Blockchain: A New Opportunity for Strengthening Trade in the Commonwealth
Come take a look at our article to learn how blockchain can help increase trade in the Commonwealth by boosting interaction in several different ways.
The Commonwealth of Nations brings together over 2.5 billion people from 54 countries for cultural alliances, common causes, and active trade in goods and services. Here’s how blockchain can open up new avenues for boosting trade in the Commonwealth by accelerating interaction in a variety of ways.
The Common Advantage
Though English is the primary language of communication in the Commonwealth, the organization is a diverse mix of values spread across six continents with various countries that have regional, continental, and global trade treaties. Not only does blockchain make it easier to determine who belongs where and what their interests are, but it also provides a platform for members to incorporate their agreements into smart contracts. This works because the blockchain is immutable. When used correctly, this can create a more equitable and transparent trading environment that benefits everyone. It also makes it easier to identify and flag bottlenecks in international trade before they become major issues.
Equity and Transparency
The Commonwealth has already identified the potential of blockchain to transform trade and is making efforts to educate its members on how blockchain can increase loan access to small countries and small businesses. Blockchain can also increase capital flow to investments in places that don’t have regular access and bring transparency to the whole process. This improves export capabilities and trade competitiveness so everyone gets a chance to put their best foot forward. When a country accumulates debt, having that information on the blockchain will improve transparency in servicing and payments.
Expanding and Regulating the Marketplace
Apart from making the rules open and easy for everyone to understand, the Commonwealth’s most important use of blockchain might be in helping create and regulate a blockchain-powered marketplace that everyone in the community has access. This should be matched by changes on the ground with respect to the movement of goods, services, and business people. Small businesses should be able to quickly identify what the rules and tariffs are and receive information when they need it. Digital currencies should be developed as needed to become trusted means of exchange and, where appropriate, legitimate stores of value.
Beyond the Commonwealth
The Commonwealth, as a global force, has a critical role to play in integrating blockchain into the very heart of international business. To its credit, the Commonwealth is embracing this by educating its members. Its Fintech Toolkit incorporates blockchain and AI and explains how these technical aspects can improve financial services for citizens. It is also collaborating with universities to develop fintech training programs for member states.
Apart from the technical aspects regarding the implementation of the technology, blockchain can be used to increase transparency around democracy in other aspects of social life that cause strife and make some member states politically unstable for business. With all these opportunities, blockchain will be a real asset going forward.
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