Pindar Wong Believes There is a Blockchain Alternative for Brexit
Pindar Wong, the chairman of VeriFi and member of CoinDesk’s advisory board, believes that there could be a blockchain alternative for Brexit. Britain is leaving the European Union (EU) and there are many discussions taking place on many different levels. There is no agreement on how to end the divorce between the United Kingdom (UK) and the EU. An alternative could be Blockchain technology.
A Blockchain Brexit
The current system is failing in the United Kingdom. There is no decision on how to exit the European Union. What is the best option, a hard or a soft Brexit? It might be possible to think about leveraging blockchain’s potential and how it can be a better solution for this dilemma.
Mr. Wong explains that blockchain can help in avoiding the need for bordered thinking in a borderless world. Laws are difficult to enforce and it is also difficult to incentivize collaboration.
One of the main issues being discussed is the boundary between the Republic of Ireland and Northern Ireland, and how people do not want to come back to physical checkpoints. Thus, the solution is to rethink the very idea of a border, says Wong.
He calls the EU and the UK to participate in a process to establish a “Brexit Blockchain.” Customs authorities could start using a blockchain architecture that would take the friction out of tariff enforcement agreeing on the provenance of economic activity on a temporal basis. This is different from a geographic boundary.
As he mentions, it might be possible to use a government stablecoin and unlock product delivery. This would incentivize the deployment and it will also take into account existing solutions for digitizing international trade.
Per-product tariffs could also be implemented and complemented with automated payments. At the same time, tariffs could be adjusted and a stablecoin backed by Euro or the Pound could be created. In the end, this could be called a Customs Network rather than a Customs Union.
Wong wrote about governance in the EU and the UK:
“To be sure, for Britain and the EU to view governance in this manner is a pipe dream, but it’s my hope that the seemingly inevitable train wreck that lies ahead for Britain will lead to some more enlightened thinking about the real problem at hand: scaling governance.”