Code is Not Law: The Legal Background for Trade Finance Using Blockchain

July 2018


Legal recognition of electronic documentation will be a key enabler of blockchain-based trade finance applications. Currently, there is no U.S. regulation or law that adequately recognizes electronic versions of negotiable instruments as such. This paper sets forth the legal obstacles facing the use of electronic negotiable instruments in a decentralized system, and considers the feasibility of creating a rulebook as an interim solution.