SettleMint and GDMS to help Laos develop a Blockchain Technology System
In a significant stride towards technological advancement in agriculture, the Department of Digital Technology of the Ministry of Technology and Communications has entered into a groundbreaking partnership with SettleMint and GDMS. This collaboration aims to conduct a feasibility study for the development of a state-of-the-art blockchain technology system to promote agricultural products in Laos.
A memorandum of understanding (MoU) for this initiative was signed in Vientiane last week by Mr. Keonakhone Saysoulian, Director General of the Department of Digital Technology, and Mr. Mathieu Ploton, Managing Director of GDMS and representative of SettleMint. This partnership is set to revolutionize the way agricultural products are monitored, verified, and promoted, ensuring greater transparency and efficiency in the sector.
Goals and Objectives
The primary focus of this cooperation is to develop a comprehensive system that provides detailed information on agricultural products, accessible by consumers at all stages. This system will encompass all aspects of production, from the initial crop production stages to the final product used by consumers. By offering such detailed information, the blockchain system aims to build trust and transparency within the agricultural supply chain.
Mr. Keonakhone Saysoulian highlighted the importance of this initiative in enhancing consumer confidence. “This technology system will not only help in building trust and transparency but also verify the origin of products. Consumers will be able to make informed decisions when buying Lao products, adding value to local goods and supporting the export market.”
Benefits of the Blockchain System
The implementation of this blockchain technology is expected to yield numerous benefits:
1. Enhanced Transparency: By providing detailed information on every stage of the production process, the system will ensure that consumers have access to accurate and reliable data. This transparency is crucial in building consumer trust and promoting Lao agricultural products on a global scale.
2. Consumer Confidence: The availability of verified information about product origins and production processes will boost consumer confidence, encouraging them to choose Lao products over others. This is particularly important in markets where quality and authenticity are highly valued.
3. Support for Local Farmers: The blockchain system will facilitate the monitoring and exchange of goods, ensuring that farmers have access to transparent financial services. This will help in optimizing the supply chain, reducing inefficiencies, and ultimately benefiting local farmers.
4. Promotion of Export Goods: With detailed and verifiable information, Lao agricultural products will be better positioned in the export market. Products like coffee and tea, which have significant export potential, will particularly benefit from this initiative.
Leveraging Blockchain Technology
Currently, blockchain technology is widely used in various sectors, including finance, agriculture, and food security. Mr. Pasithideth Luangvilay, Director of the Digital Information Centre of the Department of Digital Technology, emphasized the importance of this technology in the development of the food supply chain management system. “Blockchain technology has been promoted by international bodies such as the Food and Agriculture Organisation of the United Nations (FAO), the United Nations Organisation on Trade and Development (UNCTAD), and the European Union (EU). It helps farmers access transparent financial services and facilitates the monitoring and exchange of goods.”
Future Prospects
In alignment with global trends and to expand the use of blockchain technology in Lao agricultural production, the Department of Digital Technology, SettleMint, and GDMS have agreed to cooperate on this feasibility study. The partnership also includes collaboration with the Champasak provincial administration office, further emphasizing the commitment to enhancing agricultural practices across the country.
SettleMint, a Belgian company with extensive experience in blockchain technology, has successfully helped governments in Vietnam and other countries secure funding for similar initiatives. Their expertise will be invaluable in raising funds and developing a system to access information about Lao products, especially key export goods like coffee and tea.
Conclusion
The partnership between the Department of Digital Technology, SettleMint, and GDMS marks a significant step towards modernizing the agricultural sector in Laos. By leveraging blockchain technology, this initiative aims to enhance transparency, build consumer confidence, and support local farmers. As the feasibility study progresses, the potential benefits for Lao agriculture and its export market are immense, promising a brighter and more efficient future for the sector.
Stay tuned for further updates on this innovative project and its impact on Laos’ agricultural landscape.
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