An overview of the UK’s initiatives to support SMEs adopt digital negotiable instruments

Published: May 4, 2021
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After Abu Dhabi Global Market (ADGM) made the move to enact Electronic Transactions Regulations 2021, G7, International Chamber of Commerce and Law Commission in the UK have also come forward to work on the legal enforceability of electronic negotiable instruments such as digital promissory notes, bills of exchange, etc., that are equivalent to physical paper documents.

André Casterman, Chair Fintech Committee at ITFA and a Member of Legal Reforms Steering Group at ICC UK, has recently presented an overview of the ongoing initiatives to adopt technology that will help the UK boost SMEs’ overseas trade.

The proposed regulations are set to be established following the UNCITRAL Model Law on Electronic Transferable Records (MLETR). It is noteworthy that Enigio played an important role in the preparation of the whitepaper providing technical guidance on how to legally comply with the MLETR. Moreover, Enigio’s trace:original technology, a practical solution that truly creates digital original documents, is perfectly aligned with the guiding requirements laid out in the Model Law.

Public DLT brings notarisation of e-originals without disclosing any business data on the distributed ledger, which is in line with banking practices and regulatory data security requirements

– Göran Almgren, CEO, Enigio

The use of trace:original is not limited to the creation and management of digital negotiable instruments. The solution is also being used by Scanlog for creating digital CMR documents. The dCMRs cut operational costs and speed up the entire process of transporting goods from source to destination. Through the use of blockchain technology and Ricardian contracts designed by Enigio, Scanlog’s customers are now able to track their cargo along the supply chain and easily acquire evidence for insurance claims in case of damages or loss.