GDPR May Complicate Use of Blockchain in Trade
The European Union's General Data Protection Regulation (GDPR) may limit the applications of blockchain within international trade, the Venable law firm said in an alert. "One unintended consequence of the GDPR, which became enforceable on May 25, is that it…
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creates serious legal uncertainties for companies that are developing and/or considering whether to implement potential blockchain applications for the supply chain," it said. Because GDPR limits the use of personal data records and blockchain technology is inherently difficult to alter, the regulations raise "numerous legal questions regarding the possible use of blockchain for supply chain applications," Venable said. " For example, using blockchain to transmit bills of lading would help prevent fraudulent transactions; however, a bill of lading may contain personal data." There may be "opportunities to make the case to EU authorities that additional clarity and flexibility is needed to 'future proof' the GDPR so as to allow for the use of blockchain and other new technologies that have the potential to yield immense benefits to global supply chains and enhance global economic growth," the law firm said.