Saudi Arabian business leaders have pitched the concept of a blockchain-backed business passport which they think would be a solution for trade finance woes caused by COVID-19.
This “Global Value Chain” (GVC) passport would allow firms already following their host country’s financial rulebook to tout their credentials elsewhere, easing trade and increasing financial access globally.
According to the white paper submitted at the B20 summit, the blockchain technology would provide the GVC Passport a distributed, trusted, real-time source for global regulators to verify business accreditation claims.
The technology will provide a more efficient financial system with firms, especially small and midsize ones that normally lack a global presence to cut free from repetitive, redundant, cross-border regulatory burdens.
In a press statement, B20 Chair Yousef Al-Benyan said “SMEs represent 90 percent of businesses and 50 percent of employment worldwide, and therefore hugely impacted by the events of the past nine months. The adoption of this policy initiative will help SMEs in the recovery phase.”
Saudis who pitched their GVC Passport to global business leaders at the B20 summit early this week noted that it is a long-term proposal only possible with close international support and asked the business community and the G20 to get on board.