Australia and Singapore are set for trialing the digital verification systems using the blockchain technology. The blockchain trailing has already begun between the Australian Border Force, the Singapore Customs, and the Singapore Infocomm Media Development Authority (IMDA). The blockchain trial between the two countries intends to make international trade simpler.
Australia and Singapore Cross-Border Trade
The Australian Chamber of Commerce and Industry, the Australian Industry Group, ANZ Banking Group, and other Singaporean financial institutions that are unnamed will also take part in the trial.
Australian Border Force Commissioner Michael Outram believes that the blockchain trialing will further help in improving collaboration with Singapore to improve cross-border trade, saying:
“The ABF welcomes the opportunity to collaborate further with Singapore to improve cross-border trade between our countries. In addition to our efforts internationally, this initiative will incorporate paperless trading and secure, the digital exchange of trade information as part of the future architecture and design of an Australian Trade Single Window.”
The blockchain trial will use two digital verification systems in the trial- the ABF’s Intergovernmental Ledger (IGL) and IMDA’s TradeTrust. As per the roadmap of Australia’s blockchain, the Intergovernmental Ledger was built to digitize the validation process.
Australia’s National Blockchain Roadmap contains 12 signposts. The first signposts see that the National Blockchain Advisory Committee should be formalized and renamed to the National Blockchain Roadmap Steering Committee. Another signpost contains that the establishment of a group comprised of government blockchain users.
Blockchain Can Increase Trade Efficiency
The ABF expects that the use of blockchain will reduce administration costs and increase trade efficiency. The single trade window is expected to provide a central location for traders to submit all regulatory documents.
The result from the blockchain trial will be fed into the supply chain working group’s discovery report under the national blockchain roadmap. Exporters and regulators can also provide constructive feedback regarding how their experience went on the blockchain trialing.