Saudi Arabia asked in a report on Wednesday 9 September to ease trading and use blockchain to remove geographical barriers for businesses. It proposed having a Global Value Chain (GVC) Passport to achieve such a target.
It clarified that blockchain enhances trade facilitations by speeding up customs procedures and trade financing.
“Blockchain technology is much more than a distributed storage system, built on a series of innovations in organising data and eliminating data silos,” it noted.
Saudi Arabia explained that it comes with the objective of creating trusted sources of standardised information used by all GVC participants.
It also pointed out that a GVC passport could provide an authenticated, authoritative, verifiable financial fingerprint of a given entity.
This came in a report issued by B20 Saudi Arabia and Business at OECD.
Moreover, Saudi Arabia’s report noted this passport will help ease operations without reproducing the same documentation on multiple occasions.
“Digital technology as data verification and blockchain may greatly facilitate trusted cross-border recognition required for such a Passport to work.”
In today’s world, the use of data analytics is no longer just an opportunity, but a “requirement for business success.”
The GVC Passport works on having a set of finance-related verifiable credentials cryptographically verified between peers at the edges of the GVC network.
It maximises the use of existing data and is transparent. At the same time protecting customer data and avoiding unauthorised sharing of data.
Saudi Arabia’s report referred that this procedure would be very beneficial for small and medium enterprises (SMEs).
“Online e-commerce platforms support millions of firms by enabling them to deliver goods and services to international markets.”
Saudi Arabia’s earlier steps
This is not the first step that Saudi Arabia takes toward blockchain technology.