Saudi Arabia to Adopt Blockchain Passport to Combat Trade Finance Issues

Amidst the Covid-19 pandemic, Saudi Arabia has recently proposed to adopt Blockchain passport to curb Trade finance issues.

By · Sep 4, 2020 . 7min read

Saudi Arabia in Blockchain

Saudi Arabia has proposed a business passport developed on blockchain technology to defeat the pandemic’s trade finance challenges. A “Global Value Chain” (GVC) passport would let companies adhere to their nations’ financial rules and present their qualifications in other places. The GVC Passport would reportedly provide a distributed, up-to-the-moment, and credible way for watchdogs to check out credential claims through the blockchain technology.

The GVC Passport is an official (digital) document. It is recognized within the whole GVC and across all participating countries’ borders. It would provide secure, verifiable, and traceable financial information relating to a firm. Additionally, GVC captures all necessary information, like a single consumer view, relating to the firm as well as confirmation of a series of financial regulatory and compliance requirements by the firm in its home country. It comes with an authoritative, trusted authenticated “stamp of approval.”

Saudi Arabia reportedly proposed the idea to commerce officials from different parts of the world at a B20 summit. According to B20 Chair Yousef Al-Benyan, SMEs designate 90% of businesses and 50% of employment globally. Thus, there is a great impact on SMEs due to nine months’ events amid the Covid-19. Adopting the blockchain passport initiative will help SMEs in the recovery phase. Additionally, it is a long-term proposal only possible with close international support. Therefore, they asked the business community and the G20 to get on board.

Blockchain technology would provide the GVC Passport with a distributed, trusted, real-time source for global regulators to verify business accreditation claims, according to the Saudi’s accompanying white paper. This would result in a more efficient financial system with firms. It would significantly benefit small and medium ones that generally lack a global presence. It would eliminate redundant, cross-border regulatory burdens, the Saudi’s said.

Blockchain To Provide Immunity Passports Amid Covid-19

Covid-19 immunity passports is a possible way to defeat the future influence and spread of the virus. In theory, immunity passports could help take the pressure off often stretched healthcare systems and help reinvigorate shrinking economies. Nevertheless, as the UK’s effort to achieve its track and trace program proved, there is a real concern that technologically allowed replies to Covid-19 could impact data privacy. According to TrueProfile.io, the provider of PSV (primary source verification) services, blockchain presents some hope for helping these privacy fears. Additionally, it establishes the stage for the technology to break through into the mainstream finally. Recently Cryptodose reported on how Health and go are providing free Blockchain health certificates amidst Covid-19.

U.S.-based quantum dot producer QMC (Quantum Materials Corp) announced its blockchain-based QDX HealthID for transparency in disease testing. The objective is to ensure the authenticity of health data and help individuals to re-join the workforce soon. Moreover, individual users can assess their immunization passport, utilizing a mobile application.

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