Blockchain technology has come a long way since its introduction. Although initially facing bans in several countries, the situation has completely changed over time. The government of The UK has passed a bill which will inevitably lead to use of blockchain technology to store business documents.
Previously, the UK government had expressed its intention to go completely paperless with such an initiative. The country has also shown great interest in becoming the world blockchain and cryptocurrency center. For this reason, the House of Lords passed the bill on electronic business documents on Wednesday. It will make the use of paperless documents legal and lawful. This would inevitably reduce carbon emissions by 10%.
The need to switch from paper use in the UK to digital documents was driven by the impact of COVID-19. The pandemic had an adverse impact on supply chains. With the use of blockchain technology, the United Kingdom would be among the first major economies to implement such a policy.
Why has the UK taken this initiative?
It is evident that the use of paper documents was being considered due to their cost, weight and high sustainability. Since the supply chain became a direct target of the global pandemic, the Electronic Trade Documents Bill has been pushed forward.
Following the passage of the bill, cryptocurrency and blockchain advocate, Lord Holmes of Richmond, issued a statement stating that the potential benefits of this measure could be innumerable. As an example, if around 50% of the container shipping industry uses a bill of lading, an estimated saving of a total of £3 billion could be expected in the region.
He also added that it is shocking to see how large-scale industries rely on the use of paper documents. It is harmful to nature and contributes to the country’s carbon emissions. On the other hand, this change would inevitably redefine trade. It would also establish the UK as a center for innovative legislation.
Currently, commercial documents, such as bills of lading, need to rely on physical possession to be legal. In addition, they still have to be transferred physically, and on paper. It is not entirely legal to digitize these documents and legalize them in any case, despite having more technology. In short, going paperless may seem practical, but it’s not entirely legal.
