The UK government is introducing legislation to digitize trade documents – potentially tracked using blockchain
Members of the UK’s House of Lords have introduced legislation aimed at eliminating the need for paper trading documents, raising the prospect of using blockchain technology to track records.
In an announcement on 12 October, MP Michelle Donelan and the UK Department for Digital, Culture, Media and Sport said the Electronic Trade Documents Bill had been introduced in Parliament. The legislation proposed to remove “unnecessary paperwork and red tape” by making digital documentation legally recognized for trade.
“Electronic trade documents also increase security and compliance by making it easier to track records – for example through the use of blockchain and distributed ledger technology,” the government said, citing the World Economic Forum. “International trade is still largely dependent on a special category of commercial documents that depend on being physically possessed by one person, and transferred to another person.”
Thank you for your support of the bill @michelledonelan It is a fantastic piece of work by DCMS and a law-changing piece of legislation. There is a large international following from all corners of the world who follow closely! @DamianCollins @iccwboUK @iccwbo https://t.co/ig1UR2XT63
— Chris Southworth (@chrisouthworth) 13 October 2022
According to Donelan and the digital department, the bill will reduce the carbon emissions associated with documentation by at least 10% and reduce processing times – the UK has approximately 28.5 billion paper trade documents on a daily basis. If passed, the legislation would allow companies to offer electronic versions of documents, including promissory notes, warehouse receipts, cargo insurance certificates and ship’s delivery orders.
The Lord Privy Seal of the United Kingdom’s House of Lords introduced the bill, which ironically was “ordered to be printed” after its first reading.
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Under Prime Minister Liz Truss, the UK government’s plans for the economy appear uncertain after a now-scrapped tax cut plan sent the value of the British pound crashing. The prime minister, who took office in September before the death of Queen Elizabeth II, previously said Britain “should welcome cryptocurrencies in a way that does not limit their potential”.
