Blockchain Adoption Hinges on Multi-Stakeholder Support
As the world continues to explore the possibilities of blockchain technology, a recent survey suggests that financial institutions and regulators have a crucial role to play in removing regulatory barriers to adoption.
Removing Regulatory Barriers
The Unblocked Cash Project’s Stakeholder Survey found that 86.7% of private sector respondents believe that regulatory barriers should be removed or reduced. This highlights the need for collaboration between stakeholders, including governments, financial institutions, and regulators, to create an enabling environment for blockchain adoption.
Blockchain Adoption in Vanuatu
In Vanuatu, efforts are underway to leverage blockchain technology for economic growth and development. The Unblocked Cash Project has been promoting the use of blockchain technology across various sectors, including:
- Financial services
- E-commerce
- Government information systems
Roadmap for Blockchain Adoption
The Vanuatu Business Resilience Council (VBRC) has released a comprehensive paper outlining a roadmap for the adoption of blockchain technology at scale. The document, supported by USAID, emphasizes the importance of stakeholder consultation and buy-in from major donors, local businesses, digital innovators, and government.
Key Areas for Blockchain Adoption
The VBRC study identifies several areas where blockchain technology can be adapted to meet the needs of Vanuatu’s context, including:
- Enhancing financial infrastructure
- Improving compliance monitoring
- Promoting inclusion through the development of a Central Bank Digital Currency (CBDC)
Exciting Potential Applications
One of the most exciting potential applications of blockchain in Vanuatu is the creation of a national ID system, which could link digital IDs with access to government and private services. This would simplify processes such as:
- Opening bank accounts
- Conducting police checks
- Meeting Know Your Customer (KYC) requirements
Accelerating Economic Growth
The VBRC roadmap also highlights the potential for blockchain to accelerate economic growth by streamlining financial transactions and improving the ease of doing business. For example, digitizing record-keeping at the individual level (Digital ID) while also digitizing transactions in finance (CBDC) could create a trusted source of information on payee history, identification, location, and financial information required for payment processing.
Way Forward
While there is still much work to be done, the VBRC study provides a clear roadmap for the adoption of blockchain technology in Vanuatu. By fostering collaboration between stakeholders and promoting education and skills development, the country can harness the potential of this technology to drive economic growth and development.