European Parliament seeks to foster blockchain adoption in trade

The European Parliament is seeking to foster blockchain adoption in trade and business in the common currency area and has adopted a resolution last week on these lines, CoinDesk reported.

The resolution, called “Blockchain: a forward-looking trade policy,” noted the potential of blockchain technology to improve EU’s trade policies.

According to the document, the technology could help increase the efficiency, speed and volume of global trade, reduce the risk of illicit goods, improve traceability and transparency across the supply chain, reduce the cost of supply-chain management, detect tax evasion and much more.

The European Parliament has called upon the European Commission (EC) to follow the latest developments in the area of blockchain, particularly the ongoing pilots/initiatives in the international supply chain. It has also invited the EC to produce a strategy document on adopting blockchain technologies in trade and supply-chain management.

In addition, the EP has also called upon the EC to “develop a set of guiding principles for blockchain application to international trade.” It has urged the EC to collaborate with the member states “to launch and supervise pilot projects using blockchain technology in international trade, in order to test its benefits.”

Further noting the need for an industry strategy on the effective implementation of blockchain, the EP

“Calls on the Commission to set up an advisory group within DG Trade [the Directorate-General for Trade] on blockchain and to develop a concept note for private permissioned pilot projects on the end-to-end use of blockchain in the supply chain, involving customs and other cross-border authorities, and taking into account intellectual property rights and the fight against counterfeiting”

Other areas where the EP has sought EC’s efforts include conducting policy investigations into how blockchain can modernise the Union’s trade defence policies; assessing the optimality of blockchain architecture that keeps private data off the chain; working with relevant stakeholders in order to review and develop a framework for addressing challenges to interoperability and compatibility between blockchain systems; explore securities challenges, among others.

The EP has also urged member states to “work with international partners and all relevant stakeholders and industries to develop blockchain standards, including terminology, development, and deployment of the technology in trade and supply-chain management.”

Earlier in February, the EC launched the EU Blockchain Observatory and Forum to boost blockchain activities in the region. Later in April, it announced that 22 member countries have signed a declaration on the establishment of a European Blockchain Partnership (EBP). The EBP has now been signed by a total of 27 member countries.