The legislation necessary to enable the use of blockchain technology as a solution for the storage of documents has been approved by the UK government.
Indeed, the government announced in a press release on October 13 its desire to transition away from using paper in processing official documents.
The Electronic Trade Documents Bill, which was passed on Wednesday, October 13, in the House of Lords, would make it possible for electronic paperwork to be legally recognized and will result in a reduction in carbon emissions by at least 10% and reduce the estimated 28.5 billion paper trade documents printed and flown around the world daily.
UK Digital Secretary Michelle Donelan:
“The UK was central to establishing the international trade system in the nineteenth century, and we are once again leading the world to boost global trade in the twenty-first century. Our digital-first plans will make it easier for the country’s firms to buy and sell around the world – driving growth, supercharging our economy, cutting carbon and boosting productivity.”
UK plans to become crypto and blockchain hub
Following support from a number of members of parliament, including, most recently, Richard Fuller, Economic Secretary to the Treasury, the decision moves the United Kingdom closer to achieving its objective of becoming a center for cryptocurrency and blockchain technology.
According to the press release, electronic papers will also improve security since they will be simpler to track. This is something that might be accomplished via the use of ‘blockchain and distributed ledger technology.’
It’s worth mentioning that Finbold reported last year the UK’s regulator, the Financial Conduct Authority (FCA), revealed it would leverage blockchain technology to enhance its regulatory reporting. According to the FCA, the blockchain-based digital regulatory reporting initiative seeks to lower costs in compliance checks.
