The Center for Law and Development (QU-CLD) at Qatar University (QU) at the College of Law has published a “groundbreaking” new article attempting to take advantage of blockchain and improve trade finance in Qatar.
“Nations around the world have tried to reap the benefits of distributed ledger technology (DLT), including blockchain, but have struggled to strike a balance between encouraging investment and innovation in technology while addressing the challenges and uncertainties posed by it Address regulation. Qatar has tried to adopt DLT through its FinTech (financial technology) strategy, but its regulatory approach also remains cautious, “QU said in a statement.
Trade finance is an ideal business process to be disrupted by the benefits of DLT and especially blockchain technology as its processes remain antiquated and inefficient and not digitized. Blockchain as a form of DLT not only offers the trade finance process faster, safer, more cost-effective and more efficient procedures, but above all it completely secures the trust between importers and exporters and makes it superfluous to place this trust in third-party intermediaries, the explanatory notes.
Qatar can achieve significant economic benefits by improving its trade finance regulations that enable 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 propose a layered governance approach to the regulation of blockchain in Qatar by taking into account international regulations and standards; Replicating foreign regional and national rules that are appropriate and innovative; and applying sandbox regulations to blockchain products and services.
The Center for Law and Development at the College of Law, QU, has published about 90 impactful articles in major academic journals and books.
Dr. Jon Truby, CLD Director and Author, said, “Trade finance in Qatar can benefit significantly from blockchain technology through our regulatory change roadmap. One solution we have proposed is to leverage sandboxing rules on blockchain products and services to give Qatar a strategic advantage. “
Dr. Imad Ibrahim, Assistant Professor of Public Law at CLD added: “Research on new technologies like blockchain is extremely important in the Qatari context to ensure that the domestic regulator enables innovation in these areas and the competitiveness of the Qatari market on a global scale . “
This publication was made possible by an NPRP award from the Qatar National Research Fund (a member of the Qatar Foundation). It is available at this link: https://link.springer.com/article/10.1057/s41261-021-00165-1