Unblocking the Bottlenecks and Making the Global Supply Chain Transparent: How Blockchain technology stands to update global trade

Abstract

The emergence of Distributed Ledger or Blockchain Technology BCT, stands to impact many parts of our society; from revolutionizing healthcare, to safeguarding voting, to keeping our data private. To the same affect, BCT stands to empower the very underpinnings that go into international trade: trust, traceability, accessibility and streamlining processes. As so many times before (e.g. ICT as well as the invention of the shipping container), novel technology lowers the costs and empowers international trade. This time to go from creating global value chains to scrutinizing and optimizing them. The aim of this policy brief is as follows; First, to provide a brief overview of the technology, the use and potential effects on international trade. Second, to provide some guidelines for policy makers on how to prepare for the development of the technology.