A blockchain business passport
In a report presented to the OECD, Saudi business leaders proposed a business passport blockchain-based.
TheSaudi Arabia believes that blockchain technology can greatly facilitate cross-border trade by enabling companies to prove financial compliance. Saudi Arabia advocates the use of blockchain to reduce geographic barriers between countries.
Thus, the new passport called Global Value Chain (GVC) aims to reduce the obstacles that companies face, such as cross-border fragmentation that hinders the free movement of capital, goods and services.
The proposal, which is Saudi Arabia’s response to the coronavirus pandemic, aims to reduce bureaucratic processes when a company wishes to sell its products and services in another country.
The report states that the blockchain will play a key role in the near future. Saudi officials said the technology can “speed up customs procedures and the practice of commerce.” “
👉 To read on the same subject: United Arab Emirates: the Ministry of Health relies on the blockchain
Saudi Arabia is already using blockchain
The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, is already using blockchain technology to deposit funds in local banks.
In June, the country’s central bank injected liquidity into national banks via a platform based on blockchain technology. This injection was part of the government’s efforts to revive the local economy in the face of the coronavirus pandemic.
In 2018, SAMA also partnered with the Central Bank of the United Arab Emirates to develop a digital currency that will be used for cross-border transactions between the two countries. The central bank said:
“SAMA is one of the first central banks to experiment with blockchain technology for money transfers. “
Thus, the growing involvement of governments and central banks in the blockchain industry will undoubtedly play a major role in the process of technology adoption in the financial sector.
👉 To read on the same subject: Brazil could have its central bank digital currency in 2022
Receive a crypto news recap every Sunday 👌 And that’s it.
About the Author : Florent David
I began to discover the basics of blockchain and Bitcoin technology with Satoshi Nakamoto’s post: A Peer-to-Peer Electronic Cash System. The disruptive and controversial aspect of the subject quickly fascinated me!
All articles by Florent David.