Qatar University’s Centre for Law and Development (CLD) has published an article seeking to capitalize on the benefits of Blockchain and improve trade finance in Qatar. The article makes recommendations as to how Qatar can implement blockchain in trade finance.
As per the announcement, nations have struggled to strike a balance between investing and encouraging innovation in tech, and Distributed Ledger Technology while addressing its challenges and uncertainties using regulations.
Through its FinTech (Financial Technology) Strategy, Qatar has sought to embrace DLT, taking a regulatory cautious approach.
The article looks into Trade Finance as it is an ideal use case for DLT and Blockchain, given its antiquated, inefficient processes. As per the article, Blockchain as a form of DLT particularly offers the Trade Finance process not only more rapid, secure, cost-effective and efficient procedures, but importantly completely assures trust between importers and exporters and removes the requirement to place such trust in third-party intermediaries.
According to the authors Qatar can reap considerable economic benefits through the enhancement of its Trade Finance regulations enabling the adoption of such Blockchain technology. As such, the authors propose a roadmap and manual for the governance of the Trade Finance Blockchain ecosystem in Qatar.
The authors have proposes in their article, a multi-layered governance approach to the regulation of Blockchain in Qatar by (1) embracing international regulations and standards; (2) replicating foreign regional and national rules that are appropriate and innovative; and (3) applying sandbox regulations to Blockchain products and services.
Dr. Jon Truby, Director of the Centre for Law and Development and author, stated, “Trade finance in Qatar can significantly benefit from blockchain technology through our roadmap of regulatory amendments. One solution we have proposed is to utilize Sandbox regulations for Blockchain products and services, giving Qatar a strategic edge.”
While Dr. Imad Ibrahim, Assistant Research Professor of public law at the Centre for Law and Development added, “Research on emerging technologies such as blockchain is extremely important in the Qatari context to make sure that the domestic regulator enables innovation in these fields and to guarantee the competitiveness of the Qatari Market at the global level”.