In the recent past, the MNCCI has made a revolutionary decision to implement Blockchain and Distributed Ledger Technology (DLT) to issue Certificates of Origin (COOs). This move is aimed at revolutionizing existing trade structures and demystifying procedures relating to several trade relations, including the Generalized System of Preferences covering thirty-seven countries, the Asia-Pacific Trade Agreement including six nations, and the Mongolia-Japan Economic Partnership Agreement.
The conventional ways of confirming the COOs have, in most cases, been characterized by various inefficiencies. These inefficiencies result in inconsistencies that require direct confirmation from the MNCCI. This tedious undertaking not only incurs additional expenses and time but also reduces the benefits of PTAs and increases the likelihood of fraud.
To tackle these challenges, MNCCI has partnered with the ADB’s Digital Learning Labs and the EARD to consider the application of blockchain. An essential player in this regard is Morpheus. Network, which specializes in blockchain solutions. Specifically, from April to November in the year 2023, Morpheus. Network built an MVP that will enable the digitization, tracking, and management of the COOs’ digital footprint using blockchain technology. It also removes the conventional drawbacks of using paper-based systems, as all records of authenticity are kept in a digital format, which helps to strengthen security and confidence among the parties involved.
The proposed blockchain solution MNCCI has adopted is called “Trust Powered by Blockchain,” it can be easily implemented in existing systems. This integration allows for the streamlining of processes and for it not to interfere much with the daily operations of a business. However, this paper has established that Morpheus Network has well completed the project on time and within the given cost estimate despite a host of challenges that may characterize such a project. It was imposing how selective they were in solving the problems that MNCCI and ADB needed to address and how suitable and resourceful they were in coming up with solutions for the challenges presented to them.
This blockchain endeavor is expected to bring the following advantages. It creates a record that is stored digitally and cannot be tampered with or lost, thus increasing the credibility and effectiveness of COOs. It also eliminates numerous opportunities for fraud and mistakes, making international trading partners more confident. Furthermore, the digitization of the COOs helps process the trade more efficiently and at lesser expenses, which improves Mongolia’s competitiveness in the international market.
Further, MNCCI is eager to scale up this blockchain solution more in partnership with international donor organizations. This massive expansion demonstrates the organization’s readiness to embrace form technology to enhance the flow of information in global trade. This will be through international collaborations to strengthen its trade activity and establish the country as a tech-savvy player in more extended trade processes.
The successful implementation of this blockchain project can be considered a reference point for other countries and trading organizations striving to update their working systems. It demonstrates how blockchain technology can revolutionize conventional trade procedures regarding security, efficiency, and transparency.
Therefore, the use of blockchain technology in issuing the Certificate of Origin is a significant advancement in Mongolia’s trade facilities. Subsequently, this initiative would help improve Mongolia’s trade practices and establish trust with other countries while also opening the door to further technological advancement in the trade sector because it eliminates the issues and threats of the traditional methods of verifying COO.
