Blockchain and Bitcoin may help governments keep a better eye on the flow of goods and services across international borders, which could increase tax revenues. Use “bitcoin profit” if you want to get started with bitcoin trading. The platform has features like high compatibility with all devices, a massive range of trading tools, and many more. However, as with any new technology, some growing pains will be involved by people for all stakeholders – including developers and consumers.
Before governments can reap the benefits of blockchain technologies like bitcoin, they must determine how this new technology works to adapt their processes accordingly while minimizing disruptions and inefficiencies.
In this post, we will explore how governments can benefit from blockchain and Bitcoin technologies by examining the current international markets, some of the problems they are encountering in their relationships with other governments, and a brief overview of blockchain technology. We’ll also discuss a few use cases providing examples of how bitcoin and blockchain technology might support government services in the future.
The United States is not self-sufficient regarding energy or food supplies. Energy-rich Canada supplies 68% of America’s crude oil imports despite sharing a common border. Exports from the U.S. to Canada were US$386 billion compared to US$142 billion from Canada to the U.S. in 2013. It has created a need for the United States to depend on Canadian energy sources, food, and other resources.
This dependency is a direct result of NAFTA and the North American Free Trade Agreement (NAFTA), signed in 1994 as an agreement between Canada, the U.S., and Mexico to reduce trade barriers.
This agreement was intended to allow for more efficient resource supplies from one country to another as well as help Canada and the U.S consolidate essential trading relationships with each other to promote their everyday economies (Leviathan Foundation of Low-Tax Competition).
The North American Free Trade Agreement (NAFTA) regulates trade between the U.S. and Canada, which allows countries to trade goods and services without government regulation.
This agreement also eliminated all tariffs on products traded across borders. In addition, it established independent dispute resolution mechanisms capable of settling key trade disputes between countries without outside intervention, thus removing any potential issues of international law becoming involved in local state regulations (Leviathan Foundation of Low-Tax Competition).
In addition to the above agreements, Canada has signed similar deals with other countries such as Chile, Peru, Mexico, and South Korea. Blockchain and bitcoin may help the United States and Canada better track the flow of goods and services from one country to another, ultimately resulting in a more regulated supply chain. For example, blockchain technology could enable projects like a smart contract that can track the movement of goods from country to country and identify counterfeit products as they are being produced. Blockchain technology also has the potential to help countries maintain trade relationships with other nations by streamlining processes and reducing transaction costs.
Another critical benefit that blockchain technology has the potential to provide is in the realm of social-benefits management. For example, blockchain technology may streamline how welfare programs are paid to recipients. It could theoretically reduce government costs and help welfare recipients receive more benefits.
On the other hand, the potential of blockchain technology could also lead to a decrease in benefits both here and abroad as it eliminates the need for international tax regulations within current agreements such as NAFTA. It means countries like Canada, which previously had to pay tariffs on imports from other countries, could earn even more money by eliminating these taxes within their new trade policies.
Blockchain and bitcoin may also improve patent protection strategies by eliminating the need for third-party verification from international organizations such as the WTO. Instead, different countries may have unrestricted access to each other’s patents and intellectual property, provided the relevant regulations have been created through proper licensing agreements. In the past, this model of collaboration between countries has resulted in litigation over intellectual property rights which can sometimes take years to resolve.
These issues are just a tiny handful of how blockchain and bitcoin may be able to support government services. While it is certainly possible that blockchain technology could significantly change both the way governments track their supplies as well as how they pay out benefits to their constituents, it will not happen overnight. There are still many government officials who are sceptical of the new technology.
Problems with Trade Relationships
Modern supply chains are incredibly complex, so it can sometimes be challenging to keep track of products as they move across international borders. Blockchain technology has been proposed to solve some of these problems by creating an open ledger that can be shared globally to identify the products being traded, where they came from, and where they are going.
It is vital if one government wants to enforce strict regulations on imports or exports to protect their economy while simultaneously allowing trading partners access to those same resources at different rates or quantities.