Mongolia Embraces Blockchain with Morpheus Network for a New Era in Trade

In a significant move to modernize its trade infrastructure, the Mongolia National Chamber of Commerce and Industry (MNCCI) has adopted Blockchain and Distributed Ledger Technology (DLT) to issue Certificates of Origin (COOs). Funded by the Asian Development Bank (ADB), this initiative aims to streamline trade processes and ensure the authenticity of COOs, which are vital in international trade.

Overcoming Traditional Challenges with Blockchain

Traditionally, verifying the authenticity of products has been challenging, with inconsistencies often requiring direct verification with the chamber of commerce. This process incurs additional costs and delays, undermining the benefits of preferential trade agreements and increasing fraud risks. 

Leveraging blockchain  addresses these issues, providing a secure and efficient alternative to paper-based systems.

Enhancing Supply Chain Management

Blockchain technology serves as a powerful tool to ensure product authenticity by offering an unalterable record of each item’s journey through the supply chain. 

This capability significantly reduces the risk of counterfeit goods entering the market. Both companies and consumers can verify product legitimacy, fostering trust. This layer of security is crucial in industries where authenticity is paramount, such as pharmaceuticals and luxury goods.

The Role of Certificates of Origin

COOs certify that goods are produced or processed in a specific country, essential for benefiting from preferential tariffs under various trade agreements. 

For Mongolia, this includes agreements like the Generalized System of Preferences (GSP), the Asia-Pacific Trade Agreement (APTA), and the Mongolia-Japan Economic Partnership Agreement (EPA).

Implementation and Future Prospects

With backing from ADB’s Digital Learning Labs and the East Asia Department (EARD), MNCCI partnered with Morpheus.Network to develop a Minimum Viable Product (MVP) that digitizes and manages COOs on the blockchain. Branded as “Trust Powered by Blockchain,” this solution integrates seamlessly with MNCCI’s existing systems, ensuring a smooth transition and enhancing security and trust among stakeholders.

MNCCI plans to expand this blockchain solution through partnerships with international donor organizations, demonstrating Mongolia’s commitment to leveraging advanced technology for greater transparency and efficiency in international trade.