European Parliament Proposes the Use Blockchain Technology to Monitor Global Trade

The European Parliament (EP) during the week, proposed the use of Blockchain technology in global trade. This is a resolution tagged, “Blockchain: a forward-looking trade policy.” It states that Blockchain can bring about security, transparency, and traceability when it comes to global trade. Therefore, suggestions on areas where its application is in dire need have been outlined.

Storing Information on Blockchain to Ease Cost and Eliminate Errors

First of all, the resolution mentioned that the process of maintaining information about the supply chain is expensive. A lot of paperwork is also involved which as a result, makes maintaining data a cumbersome process that is also prone to errors. The parliament, for this reason, has suggested that tests should be carried out. These tests will help to show how Blockchain can be used to bring about improvement in this area, as well as economic growth.
The EP said Blockchain has the potential of ensuring the traceability and transparency of goods as they move along the supply chain. If exported and imported goods can be tracked using this technology, they can be accounted for. As such, this will foster trust among participants of the supply chain. Each participant will be able to access the data about these trades on the Blockchain, and when the data was created.

Detecting Money Laundering and Unlawful Payments Using Blockchain

Also, modern technology can help to detect when money is illegally obtained as well as other unlawful payments. It can help to check if importers comply with the country’s regulations and detect when counterfeit goods are imported. This also applies to the ease at which fake documents will be detected.
Moreover, there is Blockchain’s security feature to look forward to because its stored data cannot be changed easily. The parliament did not fail to note that this is a technology that comes with its challenges. It could be susceptible to attacks which may end up tampering its stored data. This and many more are areas outlined in the resolution, and the Parliament has said that each of them needs to be addressed as a matter of urgency.

Countries Across Asia, America Are Using Blockchain

The paper also noted that in 45 countries around the world, Blockchain initiatives had been set up. Specifically, these initiatives were targeted at improving importation and exportation of goods using Blockchain technology. Some countries which have already adopted the Distributed Ledger Technology (DLT) are in the Asia-Pacific, America, and the Middle East regions.

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