Trust is a revolutionary force
The Blockchain Excise Platform could also be used to underpin a “Trusted Distiller” program - similar to the Australian Border Force’s “Australian Trusted Trader” used to streamline trade for accredited businesses. The regulator could give additional privileges to platform participants because their relevant data is available on demand. National blockchains could be interlinked with those of other countries, creating a global network of Trusted Distiller benefits.
My colleague Chami Akmeemana, CEO of Convergence.Tech, describes trust as a “revolutionary force”.
“Where trust exists you can improve systems for everyone, whether they be a start-up, a global business or a regulator,” he says.
Distillers would see other benefits too. According to William Edwards, Founder of Archie Rose Distilling Co: “The Blockchain Excise Platform has the potential to streamline excise administration, reduce counterfeit product and parallel importation risks… and simply provide confidence to producers, as well as their investors, customers, and other stakeholders, that their excise obligations are 100 per cent accurate, compliant and up-to-date.”
So too the industry body. Paul McLeay, Chief Executive Officer of the Australian Distillers Association, sees benefits for exports: “The distinctly Australian flavours that distillers capture in their spirits is what sets them apart on the global stage. If you’re capturing the excise transaction data on these products, there’s an opportunity to tell the story of Australian provenance as well.”
A$DC opens opportunities
The Blockchain Excise Platform would also create new revenue streams. Once digitised on to the blockchain, inventory can be the basis of a number of financial instruments, including in the emerging space of decentralised finance - DeFi.
However, key to the utility of such instruments is their relationship with real-world hard currency.
For this reason, Convergence.Tech worked closely with ANZ to directly integrate the platform with ANZ’s Australian Dollar stablecoin (A$DC), the first stablecoin managed by a major Australian financial institution. This provides financial liquidity to digital assets and, in this use case, enables the movement of alcohol to automatically trigger remittance of the excise duty liability to the regulator.
ANZ can also supply custodian services for distiller and wholesalers’ valuable digitised inventory, enabling immediate transfers, remittance and refunds through secure digital wallets.