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Blockchain Adoption Becomes A Priority In EU Parliament For Trade And Business
Blockchain technology is earning a reputation for the transparent and immutable transactions that it hosts on its ledger. In a recent decision by the European Parliament (EP), it looks like the government body is going to seek out additional options for using this technology within their borders. Specifically, they want to increase adoption amongst businesses and trade.
The resolution was adopted on Thursday, which is titled:
“Blockchain: a forward-looking trade policy.” “The document specifically outlines the ways that EU trade policies stand to benefit from the fintech adoption in their region, which includes free trade and mutual recognition agreements.”
They note that supply chains, trade processes, and data security stand to benefit from the addition of blockchain technology. Furthermore, it will help them to reduce the costs associated with these industries, while reducing tax evasion and even corruption in the management of these transactions.
Even with the success that the EU has had with other trade processes, the free trade agreements are still not being used to their full capacity. In fact, the preferential tariffs are only even being used and applied with under 70% of exporters and about 90% of importers.
In the adoption of blockchain technology, traders have the opportunity to store their documentation in one place, allowing them to take advantage of these preferential benefits. Authorities should be able to get details from these participants, allowing for smoother processes. Luckily, the ledger affords an opportunity to improve processes for smaller and medium companies as well, considering the improvements in communication, secure payments, and smart contracts.
The EP noted that there’s a crucial need to create “global interoperability standards” that help with the smoothness of the process. It also asked that the European Commission to participate in the tracking of pilot projects, while simultaneous creating rules for how blockchain technology can be used in international trade. The European Commission is also being asked to create an advisory committee.
Concluding, the EP reminded the commission of their stance in the creation of the blockchain technology adoption for the region. It said,
“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 is just the latest step towards adoption recently. Towards the beginning of December, a joint declaration was signed between several European states – Cyprus, France, Greece, Italy, Malta, Portugal, and Spain. These countries are currently collaborating to increase blockchain adoption within their own countries.