Captain ED Geary, an award wining RICS Chartered Surveyor based in Gibraltar, outlines why his company, Geary International, will begin accepting cryptocurrency as of 1 November 2018.
In the case of yachts, both super and small, builders, brokers, buyers, sellers, and insurers are all faced with a conundrum as a result of the uncertainties of Brexit, market volatility and currency fluctuations in evidence throughout the world. Effective November 1st 2018 Geary International in addition to fiat currencies will become the first accredited maritime survey/appraisal organisation to accept Bitcoin, Litecoin and Ethereum for the payment of the maritime services provided to international clients.
While there are obvious benefits provided in accepting cryptographic and digital currencies by purveyors of maritime services it’s also beneficial to builders, brokers, sellers, buyers and insurers of super and mega yachts. These entities benefit from the efficiency and savings provided by Blockchain / Digital Ledger Technology (DLT).
Settlement of accounts by means of Bitcoin and other crypto currencies provides transparency and is auditable by third parties. A recent study by MAERSK reported that there are an estimated 17 million shipping containers in the world with inconsistent information and limited transparency as a result of antiquated legacy systems that impeded the efficient movement of goods. The archaic systems currently processing trade documents and administration costs has added an estimated 20 per cent in shipping costs.
In response to questions Forbes magazine was asked about the impact that crypto currencies and Blockchain technology will have on the FinTech industry. Forbes said, “The impact would be revolutionary because it takes away the middleman to attain the same purposes in transaction. Traditionally, intermediaries such as banks and other types of financial institutions are needed to ensure that a payment goes through. However, these middlemen cost money and, as a result, payment transactions become unnecessarily inefficient, bloated and expensive”.
Intermediaries also introduce potential third-party security risks and fraud. Blockchain technology eliminates the intermediaries and provides a more efficient alternative to antiquated legacy systems which dramatically reduces the cost of transferring money with a seamless and transparent audit trail. As Distributed Ledger Technology is going to fundamentally change all businesses that deal with data and transactions DLT shouldn’t be ignored or dismissed by those who have any hope of continued existence.
The potential of Blockchain technology will be explored in depth at The Superyacht Forum 2018, held in Amsterdam from 12-14 November. To join the debate, as well as engage with a whole host of other topics that relate to "The Perfect Customer Journey, click here to reserve your place. With 900 of the industry's key decision makers in attendance, The Superyacht Forum 2018 is not an event to be missed.
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