Technology
Saudi Arabia Blockchain-Based Market Passport to Boost International Finance
Saudi Arabia's business leaders claim that they have a solution to the trade finance issues created by COVID-19: a blockchain-based digital passport to break through red tape.
This "Internal Value Chain" (GVC) passport will encourage companies who are already adopting their host country's financial rulebook to apply their credentials elsewhere, easing trade and growing global financial entry, as suggested by the Saudis on Wednesday, to a community of G20 business leaders formed in collaboration with the OECD.
Blockchain technology will provide GVC Passport with a distributed, transparent, real-time source for global regulators to validate company accreditation statements, according to the Saudi White Paper.
The result: a more productive financial system with firms – particularly small and medium-sized companies that usually lack global presence – free from excessive, unnecessary, cross-border regulatory burdens, the Saudis said.
PMEs account for 90 per cent of companies and 50 per cent of jobs worldwide and are also significantly influenced by the events of the last nine months. The implementation of this policy agenda would benefit SMEs in the recovery process, said B20 President Yousef Al-Benyan in a press release.
The Saudis unveiled their GVC Passport to global business leaders at the B20 Summit on Wednesday. They noted that it is only possible to make a long-term initiative with near foreign cooperation, so they invited the business community and the G20 to get on board.
