- Representatives from global trade organizations have discussed the role of IOTA and its distributed ledger technology in the global dynamics of trade.
- The legal framework and changes in society are fundamental to the successful implementation of innovation.
As CNF has reported, the IOTA Foundation has made several announcements regarding its partnerships to promote the adoption of the blockchain technology and Tangle to everyday life. However, there are areas of global dynamics where trade, supply chain and regulations converge.
IOTA Foundation implements Tangle to improve supply chain and global retail
In a new episode of the IOTA Foundation podcast, Untangled, prominent members of the global trade and supply chain discussed the challenges of applying distributed ledger technology. The participants of the debate recognized the great benefits that IOTA and the Tangle could bring to global dynamics in global retail and the supply chain.
However, the participants of the debate agreed on the need for a robust regulatory framework that adapts and allows for the changes that will come with the implementation of the IOTA Tangle. This was stated by Emmanuelle Ganne, Blockchain lead in the Economic Research Department of the World Trade Organization (WTC). She talked about how the DLT (Distributed Ledger Technology) could reduce frictions in trade. She said that a DLT-based ecosystem could bring together very diverse sectors of the economy.
Ganne emphasized the fact that to achieve this, a legal framework recognizing these technologies is needed. In addition, she said that a cultural change and a more pedagogical approach to people is needed:
More work needs to be done to align processes […]. Many people have not realized the potential of blockchain technology.
Ganne talked about how the IOTA DL technology can help build bridges between different areas of industry. For that it is necessary to adjust the regulations and to have the support of the government. On the other hand, Pashupati Pandey, Senior Technical Compliance and Facilitation Officer at the WCO supplemented Ganne’s statements.
He stated that in global trade there is one standard and many agreements that have not been changed in a long time. E-commerce, according to Pandey, could be the solution to unify procedures and allow supply chain actors to share quality information that meets global standards.
IOTA Tangle can make trade more transparent
Jens Munch, Head of Global Trade and Supply Chain at the IOTA Foundation also participated in the conversation and said that the potential of DL technology is enormous in different areas. For Munch, there are transactions in the supply chain that have not been digitized.
For example, users could track products directly from the chain if IOTA solutions were implemented, as is attempted in business alliances such as China and France. This would, according to Munch, make world trade much more transparent:
You can track the transactions and products in the supply chain. Test the quality of the products. The opportunities are unlimited for large and small companies.
Finally, the debate focused on the need to bring people together. The IOTA Tangle network requires an internet connection and, in many countries, internet access is limited. The debate concluded with the premise that it is necessary to make this technology something that people can trust.
The price of IOTA stands at $0.19 USD and follows the general market sentiment with a 1.85% loss in the last 24 hours.