World Trade Organization: The Future of Blockchain Looks Bright

The blockchain technology has been embraced by many countries around the world, despite skepticism from the general public towards cryptocurrencies. The World Trade Organization (WTO), which handles global trade rules, expressed appreciation for distributed ledger technology at a recent meeting in Geneva, acknowledging its potential for wide-ranging applications across various sectors.

This meeting covers various use cases of blockchain in fields such as finance, transportation, logistics, trade border procedures, and agriculture. Emmanuelle Ganne, Senior Analyst at the World Trade Organization (WTO), presented a report titled "Blockchain and Distributed Ledger Technologies in Trade."

The report features insights from prominent participants in the blockchain space, emphasizing the use cases of distributed ledger technology. It highlights how the application of this technology streamlines processes, enhances efficiency, and reduces costs, leading to widespread adoption in trade and transportation. The report states:

When asked about the biggest advantage of blockchain in trade finance, 55% of respondents currently using or developing distributed ledgers believe it enhances transparency, 44% cite improved speed and efficiency, and 35% mention cost reduction.

The report surveyed over 200 institutions active in the blockchain space and discussed projects at various stages of concept validation. While discussing real-world use cases, the report emphasizes:

The primary challenge faced by distributed ledgers is "interoperability," along with related technical issues such as standardization, regulatory concerns, and privacy.

According to a report, the conclusion of the report addresses the changes brought about by blockchain technology, current regulatory obstacles, and development challenges, stating:

These challenges are currently hindering the expansion of blockchain and limiting its impact on the trade domain, from technical issues to standardization, legal, privacy, and governance. By working together, we can successfully address these challenges, offering a bright future for all participants in the international trade domain.

In fact, the World Trade Organization extensively explored the application of blockchain in international trade in a report in November last year, claiming that by 2030, blockchain technology could add $3 trillion in value to international trade and finance.

As per the neutral stance provided by the World Trade Organization, blockchain should not be seen as a panacea, and careful consideration of the costs and benefits of this technology is necessary during its implementation.

Further Reading

• Binance partners with travelbybit to launch a travel crypto card
• Scanning blockchain big data companies: is this a profitable business?

Join now to receive the most comprehensive information on fintech, blockchain insights, and industry examples!