Authors: Cram-Martos, Virginia; González, Joaquín; Ramírez, Lautaro M.; Arteaga, Javiera
Executive Summary
This paper explores the role of blockchain technology in international trade, highlighting its capacity to enhance transparency, traceability, and efficiency within supply chains. The analysis begins by examining the traditional challenges of international trade—such as bureaucracy, the lack of trust among stakeholders, and the costs associated with intermediaries—and then introduces blockchain as a disruptive technology capable of providing effective solutions to these issues, particularly in Latin America and the Caribbean.
The study examines the technical characteristics of blockchain technology, including decentralization, immutability, cryptography, and smart contracts, along with several practical applications in key areas such as certificates of origin, product traceability, international logistics, and cross-border payments. It also discusses specific use cases and pilot projects from different parts of the world, focusing on how governments and businesses are adopting this technology to streamline processes and provide greater legal certainty in commercial transactions.
Furthermore, the paper addresses the remaining challenges to the widespread adoption of blockchain in international trade within the region, including regulatory issues, technological interoperability, scalability, human resource development, financing, and—as is often the case with innovative processes—the need to establish trust frameworks among the stakeholders involved.
The main findings of the study are summarized below:
Blockchain Addresses Coordination and Trust Failures
Blockchain technology tackles structural trade challenges associated with the lack of trust among public agencies, businesses, and logistics operators through immutable, auditable, and verifiable records.
It Contributes to Reducing Time and Costs
The digitization of trade documents, certificates, and border procedures through blockchain reduces the need for intermediaries, automates processes, and shortens clearance and processing times.
It Strengthens Traceability and Document Authenticity
The immutability of blockchain records, together with the use of smart contracts and verifiable credentials, enhances supply chain traceability and helps prevent document fraud.
It Supports Sustainability and Regulatory Compliance
Blockchain facilitates the monitoring of environmental, social, and sanitary requirements, which are increasingly important in light of new international regulations, such as those related to agricultural traceability.
Use Cases Are Already Operating in the Region
Latin America and the Caribbean already have pilot projects and operational platforms focused on certificates of origin, agricultural traceability, and customs logistics, including initiatives in Lima, Mercosur member countries, Brazil, and Peru.
Significant Barriers to Widespread Adoption Remain
Adoption continues to progress slowly due to technical, institutional, legal, and financial barriers, as well as a lack of interoperability and common standards.
International Cooperation Is Essential
The paper emphasizes the role of regional and multilateral organizations in promoting enabling frameworks, common standards, and pilot projects to support the broader adoption of blockchain technology.