Asian Development Bank Paper Touts Blockchain in Government Procurement

A new paper authored by World Bank Group-linked experts proposes development of a blockchain network to boost efficiency across government procurement systems worldwide.

Authored by Dr. Ramanathan Somasundaram and S. M. Quamrul Hasan, both researchers specializing in government procurement, the consultation report was published Thursday, touting blockchain tech in a technological proposal for the Asian Development Bank.

Currently, there are between 200 and 250 different e-government procurement systems installed around the world, the authors say.

While these systems have potential to enhance government transparency, the siloed nature of the systems hinders their further advancement.

Providing detailed technical explanations, the authors propose the development of a blockchain system which can be deployed across worldwide governments' systems, with each participating as network nodes to access supplier databases in different jurisdictions.

"The e-GP Blockchain network should be extended to enable Banks located anywhere in the world to seamlessly submit authenticated Electronic Performance Bank Guarantees on behalf of a Supplier in any of the networked e-GP systems," the authors go on to say.

While the paper was published as a technical proposal, it indicates interest from the Asian Development Bank in exploring the use of blockchain technology to improve government operations, especially in the Asian economies.

"As the system stabilizes, more e-GP systems can be on-boarded into the network in a phased manner," they conclude.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.