To move goods from the origin point to the destination safely and reliably, it is necessary for government entities that oversee the industry – such as Customs & Border Protection (CBP) – to be given complete visibility at all times into the cargo being transported. Unfortunately, a world of “dark space” exists between shipping manifests and physical goods because cargo owners are not required by law to report their location when transporting goods overseas.
This “dark space” is one area where cryptocurrencies can play an essential role in improving supply chain processes. Blockchain is a digital ledger that people can use to share transactions in an immutable, distributed fashion. It has a proven track record of verifying and tracking transactions. If you want to trade crypto click here and you can learn more about cryptocurrencies as Bitcoin and Ethereum are fine examples of blockchains explicitly designed to transact money.
Blockchain and Government Corundum:
Blockchain technology holds great promise for many industries and can be applied to multiple supply chain functions; from tracking the location of shipments to providing faster payments with lower fees, blockchain can improve supply chain processes across many industries. The key is to trust that the blockchain is reliable enough for these functions.
The disruptive nature of blockchain technology has been recognized by the U.S. government and other regulatory bodies, who are now working to establish the industry and define its role in the economy. However, the risk involved with holding and transporting highly sensitive cargo across international borders requires a level of transparency currently lacking. With no reliable way of knowing if and when exports have made it through customs, businesses are forced to pay high fees and remain stuck in expensive customs procedures that have become a burden on companies. So let’s see how the government can benefit from cryptocurrencies.
Cryptocurrencies Improve Supply Chain:
Supply chain management has five main processes: sourcing, production planning, and control, manufacturing operations, order fulfillment, and inbound logistics. These processes are highly interdependent and always linked to ensure the products or services can reach their final destination safely.
The global supply chain is constantly changing as the world continues to become more interconnected, but there’s one aspect that has remained consistent throughout the years: risk. Every time you place an order for your latest widget or iPhone, you’re taking a risk on its future. You’re betting that the person or entity you ordered from will deliver what you paid for promptly and in good condition.
Cryptocurrency can be the technology that enables secure, efficient, and transparent information sharing throughout an organization. It has the potential to transform the supply chain by providing a single source of truth that can be shared across a supply chain network and accessed in real time.
This partnership between blockchain technology and supply chain management is disruptive. It creates new opportunities for businesses to reduce costs, improve efficiency and transparency, and reduce fraud along every step of the process by providing trusted data access to all parties involved.
Government can resolve inflation from cryptocurrencies:
Inflation is a monetary phenomenon that occurs when the value of the currency used to purchase goods and services is reduced as time goes by. Globalization, modernization, and urbanization have caused a massive demand for government services. As a result, the government has to print more money to avoid falling behind on promises made to voters and social obligations.
Inflation often results from an increase in the amount of money in circulation without a corresponding increase in economic output. The government can use blockchain technology to create a smart contracts to reduce inflation. Moreover, adopting cryptocurrencies with a finite supply, such as bitcoin, can correspondingly assist in resolving the challenge of inflation.
Government can collect taxes from cryptocurrencies:
Cryptocurrency is a new innovative technology developing quickly, with significant changes every year. Each year, the tax schemes to levy taxes on cryptocurrency owners depend on new rules, regulations, and practices. Governments are constantly fighting to capture the benefits of digital currencies, while businesses want to maintain their anonymity.
The best way for governments to collect taxes from cryptocurrency users is by setting up a digital currency exchange to see which users have purchased particular cryptocurrencies and how much they have changed hands during different times of the day. A government exchange would then be able to report these transactions to appropriate government agencies such as the Inland Revenue (IRS).
