Mongolia Embraces Blockchain for Trade Modernisation

In a landmark move towards modernising its trade framework, the Mongolia National Chamber of Commerce and Industry (MNCCI) has embarked on an innovative initiative to utilise Blockchain and Distributed Ledger Technology (DLT) for issuing Certificates of Origin (COOs). This effort is poised 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).

Mongolia and Blockchain

The traditional process of verifying the authenticity of COOs has long been plagued with inefficiencies. Businesses frequently encounter inconsistencies, necessitating direct verification with the MNCCI—a process that incurs additional costs and delays, undermining the advantages of preferential trade arrangements and heightening the risk of fraud.

In a decisive response to these challenges, the MNCCI, with support from the Asian Development Bank’s (ADB) Digital Learning Labs and in collaboration with ADB’s East Asia Department (EARD), embarked on an exploratory venture into blockchain technology. The stringent criteria for the project demanded an innovative solution that ensured security, efficiency, and scalability.

Morpheus.Network, a firm renowned for its expertise in blockchain services, was selected as the partner for this initiative. Between April and November 2023, Morpheus.Network developed a Minimum Viable Product (MVP) that digitises, tracks, and manages the digital footprints of COOs on the blockchain. This pioneering approach promises to eliminate the inefficiencies of paper-based systems, providing an immutable record of authenticity and enhancing security and trust among all stakeholders.

The blockchain solution, aptly branded as “Trust Powered by Blockchain,” integrates seamlessly with MNCCI’s existing systems, ensuring a smooth transition with minimal operational disruption. Despite the complexities inherent in integrating such advanced technology into established infrastructures, Morpheus.Network delivered the project within the stipulated timeframe and budget. Their adept problem-solving skills, responsiveness to MNCCI and ADB requirements, and ability to navigate challenges were particularly noteworthy.

Looking to the future, MNCCI is keen on expanding this solution through partnerships with international donor organisations, underscoring its commitment to leveraging cutting-edge technology for enhanced transparency and efficiency in international trade.

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