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Brexit, Blockchain and the Irish border

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Among the many issues that are proving difficult for the EU and the UK to overcome one of the most problematic is the impasse concerning the Irish border.

Great Britain and Europe Brexit.

C & # 39; is the "Stopping", & nbsp; a form of guarantee that the Republic of Ireland is seeking the border with Northern Ireland (part of the United Kingdom) to be completely open for the free passage of trade, people and services.

Dublin insists on this, even if it's a tough one "No agreement" Brexit. It is not difficult to understand why the Irish feel this way because the United Kingdom accounts for 16% of Irish exports and 39% of their imports. Any obstacle to freedom of trade would be difficult for both parties.

Given the benefits that Ireland and the United Kingdom draw from the open border, one wonders why it has become a stumbling block in the extremely grueling negotiations?

The EU and the United Kingdom were on the same page as the first phase of the Brexit negotiations ended in December 2017. Their common opinion was that if an agreement could not be reached, there would be a system regulatory alignment between Ireland and Ireland. and Northern Ireland.

This plan was torpedoed under the waterline by the Democratic Union Party (DUP) of Northern Ireland, claiming they had not been consulted. Given that their 10 Westminster parliamentarians are providing the conservative Theresa May minority government with the votes to obtain key legislation through parliament, they have a strong opinion on any policy affecting the island of Ireland.

There was a need for a quick and extravagant footwork from Ms. May and to alleviate the DUP's concerns that after the Brexit there would not be a different treatment of Northern Ireland, she assured she would not have never accepted a regulatory border crossing Ireland or the Irish sea.

So far, this has proven to be an obstacle to the Brexit talks as the UK is not trying to agree on an agreement under which it remains in the official singe market or in a customs union. Nor, as the Prime Minister said, will oversee a gap in the United Kingdom.

However, there may be a solution at hand if the EU and the UK are willing to trust "Blockchain" technology.

A watchful eye protects the encrypted code Source: Getty

One of the main areas in which the blockchain has gained traction recently is in "Financial market". Each week, several test schemes are announced in which banks and exporters / importers explore how to take advantage of the opportunities offered by blockchain technology in commercial finance and supply chain management.

What has emerged is that the limited vision of opportunities in a series of isolated or "stand-alone" scenarios is selling the process in short. A wider success and profitable opportunities could emerge from a network approach to cover all phases, ie the parties in a commercial or value chain. This would allow the completion of multiple transactions as subsets of the same chain with respect to several discrete operations.

This could turn out to be the technological solution to the problem of the Irish border after Brexit and the driving force behind this possibility is the British Chancellor of the Treasury, Philip Hammond.

Just last week at the Conservative Party Conference in Birmingham, when asked about the Irish border and its impact on the UK economy, he suggested

"… Technology is becoming available, … I do not pretend to be an expert but the most obvious technology is blockchain. …"

It's too easy, even lazy to argue that given the only large-scale blockchain effort, it was to support Bitcoin. There is a growing number of companies that are finding ways to incorporate the blockchain into their businesses as a means of ensuring quality and quantity. Therefore, it is not unrealistic to suggest that the immutable security of the data stored in the blockchain is the best solution to tackle border control problems.

Stored data is increasingly difficult to tamper with. As a result, they would be thieves of goods or system hackers will give up. Remember, among all the stories of fear on the Bitcoin hacks, it was exchanges that formed the weak link, not the blockchain.

If skeptics within the EU and the UK need reassurance, they should look to the example that was set by Maersk and IBM who set up a joint venture seeking to transform global shipping . Making use of blockchain technology are laying the foundations of a maritime commercial model that will work safely within six months.

Maersk established its pilot experimentation in collaboration with DowDuPont Inc, based on which the technology was adopted in the ports of Houston and Rotterdam. The addition of legitimacy to the agreement is the fact that customs agencies in both the Netherlands and the United States have also become part of it. The IBM connection is found & nbsp; in programs that followed with Nestle SA, Unilever NV and Walmart INC.

Development has been seen to make tracking of goods much more effective and efficient and is highly encouraging for eCommerce opportunities on a global basis.

Critics may argue that the time, cost and scale of the construction and implementation of a blockchain-based customs system would be long and expensive. They will also point to the quicksand of EU and UK policy as what could be agreed in 2019 could be weakened by a series of political changes in the EU and the UK over the next five years.

It is so short-sighted that this technology can offer a problem-free solution to the problem of identifying products that would enter the EU through the UK to ensure compliance with EU regulatory standards.

It should be recalled that the EU as a whole is the UK's main trading partner. In 2017, UK imports from the EU were £ 341 billion or $ 447 billion (53% of all UK imports). UK exports to the EU were $ 274 billion or $ 359 billion (44% of all UK exports). & nbsp; These are huge sums of money from any measure. Before the EU / UK luddites shoot blockchains, they should seriously think about the economic damage that they will not be able to agree on due to the Irish border that will cause for both parties.

Even if, in the best possible outcome, the European Union and the United Kingdom were able to sign a free trade agreement, they would rightly require customs protection checks to determine whether a product crossing the Irish border comes from the country. near or by a third-party nation that tried to evade tariffs.

Blockchain can be the economic guardian on the tower, can break this obstacle.

Stephen Pope ~ MarketMind

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Among the many issues that are proving difficult for the EU and the UK to overcome one of the most problematic is the impasse concerning the Irish border.

Great Britain and Europe Brexit.

C & # 39; is the "Stopping", A form of guarantee that the Republic of Ireland seeks in the fact that the border with Northern Ireland (part of the United Kingdom) is kept fully open for the free passage of trade, people and services.

Dublin insists on this, even if it's a tough one "No agreement" Brexit. It is not difficult to understand why the Irish feel this way because the United Kingdom accounts for 16% of Irish exports and 39% of their imports. Any obstacle to freedom of trade would be difficult for both parties.

Given the benefits that Ireland and the United Kingdom draw from the open border, one wonders why it has become a stumbling block in the extremely grueling negotiations?

The EU and the UK were on the same page as the first phase of the Brexit negotiations ended in December 2017. Their common opinion was that if an agreement could not be agreed, an alignment system would be provided. regulatory framework between Ireland and Northern Ireland.

This plan was torpedoed under the waterline by the Democratic Union Party (DUP) of Northern Ireland, claiming they had not been consulted. Given that their 10 Westminster parliamentarians are providing the conservative Theresa May minority government with the votes to obtain key legislation through parliament, they have a strong opinion on any policy affecting the island of Ireland.

There was a need for a quick and extravagant footwork from Ms. May and to alleviate the DUP's concerns that after the Brexit there would not be a different treatment of Northern Ireland, she assured she would not have never accepted a regulatory border crossing Ireland or the Irish sea.

So far, this has proven to be an obstacle to the Brexit talks as the UK is not trying to agree on an agreement under which it remains in the official singe market or in a customs union. Nor, as the Prime Minister said, will oversee a gap in the United Kingdom.

However, there may be a solution at hand if the EU and the UK are willing to trust "Blockchain" technology.

A watchful eye protects the encrypted code Source: Getty

One of the main areas in which the blockchain has gained traction recently is in "Financial market". Each week, several test schemes are announced in which banks and exporters / importers explore how to take advantage of the opportunities offered by blockchain technology in commercial finance and supply chain management.

What has emerged is that the limited vision of opportunities in a series of isolated or "stand-alone" scenarios is selling the process in short. A wider success and profitable opportunities could emerge from a network approach to cover all phases, ie the parties in a commercial or value chain. This would allow the completion of multiple transactions as subsets of the same chain with respect to several discrete operations.

This could turn out to be the technological solution to the problem of the Irish border after Brexit and the driving force behind this possibility is the British Chancellor of the Treasury, Philip Hammond.

Just last week at the Conservative Party Conference in Birmingham, when asked about the Irish border and its impact on the UK economy, he suggested

"… Technology is becoming available, … I do not pretend to be an expert but the most obvious technology is blockchain …"

It's too easy, even lazy to argue that given the only large-scale blockchain effort, it was to support Bitcoin. There is a growing number of companies that are finding ways to incorporate the blockchain into their businesses as a means of ensuring quality and quantity. Therefore, it is not unrealistic to suggest the immutable security of data stored in the blockchain is the best solution to tackle border control problems.

Stored data is increasingly difficult to tamper with. As a result, they would be thieves of goods or system hackers will give up. Remember, among all the stories of fear on the Bitcoin hacks, it was exchanges that formed the weak link, not the blockchain.

If skeptics within the EU and the UK need reassurance, they should look to the example that was set by Maersk and IBM who set up a joint venture seeking to transform global shipping . Making use of blockchain technology are laying the foundations of a maritime commercial model that will work safely within six months.

Maersk established its pilot experimentation in collaboration with DowDuPont Inc, based on which the technology was adopted in the ports of Houston and Rotterdam. The addition of legitimacy to the agreement is the fact that customs agencies in both the Netherlands and the United States have also become part of it. The IBM connection is found in the programs that followed with Nestle SA, Unilever NV, and Walmart INC.

Development has been seen to make tracking of goods much more effective and efficient and is highly encouraging for eCommerce opportunities on a global basis.

Critics may argue that the time, cost and scale of the construction and implementation of a blockchain-based customs system would be long and expensive. They will also point to the quicksand of EU and UK policy as what could be agreed in 2019 could be weakened by a series of political changes in the EU and the UK over the next five years.

It is so short-sighted that this technology can offer a problem-free solution to the problem of identifying products that would enter the EU through the UK to ensure compliance with EU regulatory standards.

It should be recalled that the EU as a whole is the UK's main trading partner. In 2017, UK imports from the EU were £ 341 billion or $ 447 billion (53% of all UK imports). UK exports to the EU were GBP 274 billion or USD 359 billion (44% of all UK exports). These are huge sums of money from any measure. Before the EU / UK luddites shoot blockchains, they should seriously think about the economic damage that they will not be able to agree on due to the Irish border that will cause for both parties.

Even if, in the best possible outcome, the European Union and the United Kingdom were able to sign a free trade agreement, they would rightly require customs protection checks to determine whether a product crossing the Irish border comes from the country. near or by a third-party nation that tried to evade tariffs.

Blockchain can be the economic guardian on the tower, can break this obstacle.

Stephen Pope ~ MarketMind

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