Blockchain adoption in the global trade market
According to reports coming from the European Parliament(EP), they are pushing for a broader Blockchain adoption in global trade and businesses.
Based on a legislation on Thursday regarding blockchain adoption and resolution of the Blockchain technology, the Paliament has set out ways on how the technology can be implemented in the EU trade policies.
This legislation which was dubbed Blockchain: A forward looking trade policy, includes free trade and a mutual recognition to agreements with smart contracts.
In a statement made by the European Plaiament, they evaluated how the Blockchain technology can be useful for the economy.
They noted that the Blockchain technology is improving global supply chains and transparency. With the use of this technology, trade processes can be streamlined thereby reducing costs, corruption and improving the security of data.
There is however, still a lot of Cybersecurity challenges that remain ahead, however for the smooth running of global transactions between entities.
Currently there is an average of 67 percent of exporters and 90 percent of importers that are making any use of the preferential tariffs in the EU and partnering nations.
EU officials see potential in the Blockchain applications
Through the use of the Blockchain technology, traders are able to upload and store all their documents in one place. The Distributed ledger is also able to include compliance as well as preferential benefits for tariffs.
The Blockchain offers the possibility for authorities to automatically receive information from private parties while improving verification and trade processes.
The EP stated that the Blockchain adoption can also help small to medium sized enterprises, and allow for better communication between parties, fast and secure payments while simplifying the use of smart contracts in todays financial system.
According to them there is a need for the development of global interoperability standards in order to facilitate transactions across the Blockchain into the Supply chain processes.
The discussion continued on to the European Commission about the tracking and ongoing global supply chain pilot projects. There was a draft of the applicability of the Blockchain in international trade, and setting up an advisory committee for the Blockchain technology within the Directorate General for trade and commerce.
In a recommendation given by the European Parliament to the commission they stated:
“The EU has an opportunity to become a leading actor in the field of Blockchain and international trade, and that it should be an influential actor in shaping its development globally, together with international partners.”
This resolutions is one of the latest positive steps towards the Blockchain adoption in the European region.
In the beginning of this month, several Southern European states like Italy, Spain, Malta, Portugal and France that signed a joint declaration about the promotional use of Blockchain in order to transform the European Economy.
What do you think about this decision from the EU parliament? Please feel free to leave a comment down below.