So far the discussion around Brexit and blockchain technology has focused on the Irish backstop and how it could form part of the solution to solve trade between the UK and the EU. However, while this has grabbed headlines, the reality is blockchain technology can already help businesses. In fact, when combined with expertise in banking and finance, blockchain has the potential to enable cross-border trade. For businesses looking to easily manage their national currencies and digital assets, Brexit is presenting a great opportunity.
Nonetheless, right now Brexit and the debate on the future relationship between the UK and EU rumbles on. At the heart of many of these discussions is how trade will function both during and after the transition period. For instance, in the finance sector, there are ever-growing concerns about extra levels of regulatory divergence. Already accounting for five to 10% of a financial institutions turnover or roughly $780bn each year, any future new procedures or changes will only add to this sizeable burden.
While no one wants a Brexit deal that will make either the UK or EU worse off, there’s still a worry about how businesses will operate after the divorce. Unfortunately, this will remain the case until a seamless and efficient trading process is finally decided upon by the government and Brussels. Even though a future trade agreement with the EU and other countries is being finalised, there’s no time for businesses to rest on their laurels. As every good scout knows, it’s vital to be prepared. As such, businesses should already be considering how they can update their processes, particularly when it comes to making international payments.
The good news is that blockchain technology is already available to help with this. Blockchain-based banking, which has the potential to form a key part of an international business function, offers one place where organisations can quickly manage their digital assets and national currency accounts. In doing so, it simplifies financial management and helps grease the wheels of international business and trade.
Furthermore, it isn’t just UK and EU-based businesses that stand to benefit. Centralising multiple accounts has a liberating experience for those operating across the globe. Whether doing business in Asia, Europe, the Middle East or South America, those managing finances can quickly make the transactions they need, from the accounts that make the most sense at that time. The advantages to blockchain-based banking are consequently clear for any business operating internationally.
Discussions around the four freedoms – the freedom of movement of goods, service, people and capital – will continue to rumble on even after the Brexit deadline. Fortunately, businesses can alrea begin to prepare for this new supranational trading environment. Those who are looking at getting ahead of the curve – both with their Brexit as well as business operations – should definitely look towards blockchain-based banking technologies.
Via just one platform, business leaders can offer an integrated banking system which is both secure and easy to use. Those who prepare properly now stand to not only survive Brexit but actually grow and thrive on the international stage.