Blockchain for Supply Chain Efficiency in the Maldives

Abstract

Blockchain technology presents a potentially transformative opportunity for Small Island Developing States (SIDS), particularly for the Maldives. With inefficiencies in supply chain of primary economic sectors such as tourism, fisheries, and public procurement, blockchain offers solutions for greater transparency, security, and operational efficiency. This study examines the current state of blockchain technology and its adoption in the Maldives, investigating its use in supply chain digitalization, and determining key barriers and facilitators. Findings indicate the Maldives is seeing a growing interest in blockchain, however, there is no legal or regulatory framework in place yet. Although the government has undertaken some initiatives primarily towards enhancing trade facilitation, there is limited evidence of blockchain adoption in the private sector. The study explores the potential benefits of blockchain for supply chain efficiency, focusing on improvements in traceability, transparency, automation, and risk management and the challenges hindering blockchain adoption, including technical, regulatory, financial, and institutional barriers. Finally, it puts forward strategic considerations for blockchain-enabled supply chains in the Maldives and other SIDS, highlighting the importance of investing in complementary technologies, capacity building, regulatory frameworks, and pilot projects.