Germany’s supply chain law is a gamechanger for blockchain

Germany seeks to protect human rights worldwide. Here’s why this could be an excellent use case fr blockchain.

The German government wants to introduce a supply chain law before the end of this legislative period. Under the proposed rule, large companies will have to monitor and promote human rights compliance in their supply chains from 2023. Blockchain technology can help companies meet the requirements of the law. However, the possibilities of blockchain go far beyond that. Implementing a blockchain in your supply chains now can simultaneously benefit from the efficiencies and technical capabilities that blockchain technology offers.

This article first describes the background and content of the proposed German Supply Chain Act (I.). It addresses the potential applications of blockchain to implement the Supply Chain Act requirements (II.).

I. Background and content of the German Supply Chain Act

After lengthy negotiations, the ministries involved have reached a compromise to be passed before the legislative period ends in September 2021. The “Act on Corporate Due Diligence in Supply Chains” is intended to help remedy existing grievances in global supply chains of transnational companies.