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The World Trade Organization (WTO) has said that customs processes continue to be an obstacle to greater digitization of trade on the blockchain.
In its latest taxonomy of DLT projects in international trade, which establishes a “periodic table” of ongoing projects in the sector, the WTO said that customs are currently the “weak link” preventing more widespread implementations of blockchain technology.
The report found that the average maturity of the listed blockchain projects was 3.3 out of 5, up from 2.3 out of 5 in December 2019. According to the WTO report, this means the average project is now “in the early stages of production and to be, live and run. “
The WTO report, published jointly with Trade Finance Global, highlights two major benefits of blockchain technology in international trade. The first is greater transparency along supply chains, strengthening consumer confidence and allowing for greater traceability from origin to market.
The second major benefit identified in the report is process improvement by simplifying data management and improving data security.
However, the report found that customs processes still have a lagging effect on the development of DLT projects in the sector.
“Any digital process will only be as strong as its least digitized link. For many international trading systems this means integrating customs. While several governments are testing or evaluating the use of DLT for their customs operations and single windows, most projects remain in a conceptual or pilot phase. “
Noting that progress has been made since last year, the WTO said the industry needs to move faster to fully benefit from blockchain.
“While these are significant positive developments, it is not enough. If the industry is to continue to push the boundaries in terms of digitalizing commerce, it must start to see more movement on this front. “
See also: Keynote by Dr. Craig Wright at CoinGeek Live, From the Internet to Bitcoin: The Digital Ledger to Advance the World Technology Infrastructure
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