The implications of blockchain for trade and Brexit

Back in 2016 United Kingdom held a first referendum to leave the European Union, and up until January 31st 2020 UK and EU have been negotiating the political terms of BREXIT, however a side from the political implications, the decision that UK will no longer be a part of European Union has enormous impact on economy, trades, and many various industries, so in the light of recent events we decided to re-visit an article written by Nicolas Botton back in 2018 and published by Encompass Europe
…“ Last summer, the UK’s Brexit team suggested that “technology-based solutions” – meaning blockchain – could be used to deal with the complex predicament which Brexit has brought to the border between Northern Ireland and the Republic of Ireland, where a customs border would be necessary upon the UK’s exit from the Union. The UK’s suggestion was rightfully ridiculed by experts: questions of capacity and time constraints mean that technological solutions are actually unworkable altogether. Nevertheless, blockchain is a technology with real potential, especially in the field of trade….
Thanks to blockchain, the complex processes involved in trade – whether regulatory, logistical, or regarding chains of custody – could be made significantly more efficient. Used in a supply-chain, it would provide a firm with the infrastructure necessary to remove the need to secure each transaction through intermediaries via registration, tracking and certification. Information on any shipment – whether it be a proof of purchase, a clearance form, a bill of lading, insurance – can be made part of a block, and be accessible to suppliers, transporters, buyers, regulators and auditors. Having all this information in one location would not only lower transaction costs but auditing and accounting costs as well. Used in customs handling, exporters could upload all the documents onto a customs office blockchain and instantly prove their abidance with all import rules – for example, qualification for preferential rates through rules of origin, sanitary and phytosanitary (SPS) rules, or compliance with embargoes…“
Read the entire article here: