Latvian Ministry Thinks Blockchain May Turn Out To Be Advantageous

As per reports published by Delfi.lv, the State Revenue Service of Latvia mentioned that blockchain technology makes way for new business opportunities and can provide more efficient solutions which in turn will reduce the involvement of third-party participants in local business operations in the future. Examples of the use cases of blockchain were also furnished and further actions for the development of the field were recently published by Latvian the Ministry of Economics.

Latvia, right now, is one of the leading European countries with regards to cash flow restrictions. It was just last year the Latvian Ministry of Finance declared that transactions over 7,200 Euros could not be made with cash. This decision was taken to fight the shadow economy in the country. However, now, the Latvian tax authorities have seen that blockchain technology is used in this sector can be quite advantageous. It was also mentioned that distributed ledger technology can be used in cash registers at the point of sales, which also plays an important role in combating the shadow economy.

The Ministry is of the opinion that Blockchain-based solutions will strengthen its surveillance capacity in Latvia. They have suggested a plan to develop a technical solution for electronic devices and equipment at points of sale that would transfer the trade data directly to the State Revenue Service online using blockchain technology. They issued a statement, saying,

“This proposal should be implemented as a future solution that entrepreneurs could use on their own initiative for more convenient and effective cooperation with the State Revenue Service.”

Other proposals for future technical support measures will be represented by the end of 2019, stated the report. Furthermore, the Ministry of Justice was invited to evaluate and give an opinion on extending the existing legal framework. Thus Blockchain and smart contracts use in Latvia could be recognized as legal.

The difference between blockchain and cryptocurrencies has also been outlined and though cryptocurrencies like Bitcoin, are considered as legal means of payment in Latvia, it is not considered as official currency.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.