Mongolia adopting Blockchain to modernise certificates of origin issuance in trade

Mongolia adopting Blockchain to modernise certificates of origin issuance in trade
Certificates are digitised, tracked and managed on the blockchain.
By bne IntelliNews May 23, 2024

Blockchain and Distributed Ledger Technology (DLT) for issuing Certificates of Origin (COOs) is to be used by the Mongolia National Chamber of Commerce and Industry (MNCCI), trade media reported on May 23.

One aim is to streamline operations under various trade agreements, including the Generalized System of Preferences for 37 countries, the Asia-Pacific Trade Agreement (APTA) for six countries and the Mongolia-Japan Economic Partnership Agreement (EPA), according to MNCCI.

Businesses often experience inconsistencies using the standard process of verifying the authenticity of COOs. That means direct verification with the MNCCI is required, bringing about extra costs and delays and raising the risk of fraud.

MNCCI said it would be backed by Asian Development Bank’s (ADB’s) Digital Learning Labs and collarborate with ADB’s East Asia Department (EARD) in initiating a pilot venture into blockchain technology.

Blockchain services provider Morpheus.Network was chosen as the partner for the initiative. It has developed a Minimum Viable Product (MVP) that digitises, tracks and manages the digital footprints of COOs on the blockchain. The elimination of the inefficiencies of paper-based systems, immutable records of authenticity and raised security and trust among all stakeholders are key objectives.

The blockchain solution, named “Trust Powered by Blockchain,” is to integrate seamlessly with MNCCI’s existing systems.

MNCCI said it would look at expanding the solution via partnerships with international donor organisations.