A Bill of Exchange (BoE) is a paper-written contract involving three parties A, B and C where A is economically in debt with B and in credit with C. Once the parties approve a BoE, C is legally bound to pay B on behalf of A within a set deadline, so that the debt of A towards B is extinguished. Although regarded as an elegant and powerful variant of a promissory note, over time the BoE has become unpractical to use in a global market where suppliers and customers aren’t next-door companies anymore. On the other hand, the blockchain distributed ledger, AES authentication, and digital archiving with suitable long-period standards (e.g., PDF/A) may encourage the revival of such an instrument, while ensuring legal validity, strength and a non-tampering warranty. This paper exploits said state-of-the-art technologies to bring the paper-based BoE into the digital era as the DigiBoE. Its envisioned applications are B2B, C2C and B2C secure and legally acknowledged transactions for debt resolution no longer requiring financial intermediaries.

Envisioning the digital transformation of financial documents: A blockchain-based bill of exchange

Simone, A.;Tomazzoli, C.
2020-01-01

Abstract

A Bill of Exchange (BoE) is a paper-written contract involving three parties A, B and C where A is economically in debt with B and in credit with C. Once the parties approve a BoE, C is legally bound to pay B on behalf of A within a set deadline, so that the debt of A towards B is extinguished. Although regarded as an elegant and powerful variant of a promissory note, over time the BoE has become unpractical to use in a global market where suppliers and customers aren’t next-door companies anymore. On the other hand, the blockchain distributed ledger, AES authentication, and digital archiving with suitable long-period standards (e.g., PDF/A) may encourage the revival of such an instrument, while ensuring legal validity, strength and a non-tampering warranty. This paper exploits said state-of-the-art technologies to bring the paper-based BoE into the digital era as the DigiBoE. Its envisioned applications are B2B, C2C and B2C secure and legally acknowledged transactions for debt resolution no longer requiring financial intermediaries.
978-3-030-52534-7
Blockchain, Bill of exchange, Smart contracts, FinTech, DeFi
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/1042494
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