Qatar University (QU) The Centre for Law and Development (CLD) at the College of Law has published a groundbreaking new article seeking to capitalize on the benefits of Blockchain and improve trade finance in Qatar.
Nations worldwide have sought to capitalize on the benefits of distributed ledger technology (DLT) including Blockchain, but struggled to strike a balance between encouraging investment and innovation in the technology while addressing the challenges and uncertainties through regulation. Through its FinTech (Financial Technology) Strategy, Qatar has sought to embrace DLT, but its regulatory approach also remains cautious.
Trade Finance is an ideal business process to be disrupted through the benefits of DLT and especially Blockchain technology, since its processes remain antiquated, inefficient and lack digitization. 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. 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 propose 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.
The Centre for Law and Development at the College of Law, Qatar University has now published approximately 90 high impact articles in major scholarly journals and books.
Dr. Jon Truby, Director of the Centre for Law and Development and author, said: “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.”
Dr. Imad Ibrahim, Assistant Research Professor of public law at the Centre for Law and Development mentioned that, “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”.
This publication was made possible by the NPRP award NPRP11C-1229-170007 from the Qatar National Research Fund (a member of the Qatar Foundation). The statements made herein are solely the responsibility of the authors. Open Access funding provided by the Qatar National Library.
Source: Qatar University