Recently Bahrain announced that it will start using blockchain technology to run its diversified projects. General Directorate of Traffic (GDT) launched a program that will see vehicle registration done using blockchain technology.
Like many countries, Bahrain is betting on blockchain technology to reduce the cost of funding global trade. According to a report compiled by the Dubai Multi-Commodities Center (DMCC), blockchain technology can help cut cost of financing trade between countries by almost 20%. According to the report, costs from international trade stand at around $1.8 trillion. 20% of these costs are related to paperwork processed by corporates and banks.
Blockchain creates a digital public ledger for recording transactions. This not only guarantees the security and safe custody of the information but also ensures that it is easily accessible when needed. Additionally, it cuts the costs that are related to documentation, which requires a lot of paperwork.
Financial institutions in other countries in the Middle East are benchmarking Bahrain. These include Abu Dhabi and Saudi Arabia.
In a statement, the GDT director general, Shaikh Abdulrahman bin Abdulwahab Al Khalifa, said that the registry will be very important in reducing the costs related to maintaining important vehicle details. He noted that it will boost efficiency in supply chain management and increase the level of transparency.
Bahrain has already had many of its financial institutions invest in blockchain projects. In August 2017 CoinDesk reported that Arab Banking Corporation, which is based in Bahrain had joined the R3 distributed ledger group, a decision it says was motivated by the desire to offer additional services to its customers.
Ledger acceptance in Bahrain
According to a report by CPI Financial, the last few years have seen people increasingly become aware of robot-advisory services, blockchain and digital wallets. The report says that Bahrain has seen an increase of people that are looking for innovative digital banking solutions as well as using blockchain technology to lower prices.
The report further says that the growing awareness of blockchain will help revolutionize the way business is done in the country.