Saudi Arabia Business Leaders have proposed that the G20 kickstart blockchain trading which would bring the best out of cross border trading.
In the statement that was released by Saudi Arabia, it noted that the main aim of the new blockchain technology cross border trading is to make sure investments comply with international financial rules.
In the defence for the technology, the Asian country says it would make sure investments and businesses strictly abide by the laid down rules. In the proposal that was submitted, Saudi Arabia noted that deploying the technology will remove major geographical obstacles to cross border trading. To make this achievable, the country asked that a law be initiated which would allow only businesses that own business passports to be a part of the GVC (Global Value Chain).
Saudi Arabia Business Leaders submits proposal to G20 and Business at OECD
Interestingly, this proposal was submitted to the G20 group and the Business at Organization for Economic Co-operation and Development (OECD) by the Business leaders.
In the proposal, the business passport was going to be used to eliminate obstacles that threaten cross border trading such as fragmentation at cross borders, blocking the free flow of goods and services. The main aim of this carefully drafted proposal by the business leaders was to ensure the total elimination of bureaucracy when dealing in trades with another country.
Blockchain to act as a catalyst for the effectiveness of the cross border trading proposal
According to the business leaders of Saudi Arabia, Blockchain technology would be the much-needed catalyst to effect the change in cross border trading. Blockchain will help to hold standard information about a business and will act as a framework that the GVC will rely on.
Serving a better purpose than the framework that is present now, the proposal argued that the new system would be able to hold as much information as possible about the business. The result will be a safe environment where businesses can carry out trade without getting scared of infringements