It seems that the Danish Ministry of Foreign Affairs is looking to use the benefits of blockchain to aid them in their efforts of deploying international assistance. According to a report released by the Ministry titled, “Hack the Future of Development Aid,” integrating the blockchain can allow for advancements in various aspects of the humanitarian aid sector.
Among several other things, the report covered that blockchain has the potential to “renew development cooperation and humanitarian aid, among other things by using cryptocurrency and digitalizing contracts and rights.”
The report was prepared as a collaborative study by the Danish Ministry of Foreign Affairs, the international think tank Sustainia, and the blockchain currency platform Coinify.
The observations and findings suggested that humanitarian aid organizations can leave paper documents and slow transactions behind by looking into the usage of blockchain. It can modernize and speed up parts of the process which would normally be time and cost consuming.
Denmark is proud to present the report
Ulla Tørnæs, the Danish Minister for Development Cooperation, said:
“There are huge opportunities [sic] in bringing the technological development into play in development cooperation. The use of Blockchain and cryptocurrency is merely some of the technologies, which can give us new tools in the development cooperation toolbox.”
“It is clear that if we are to succeed in relation to the sustainable development goals we need digital and technological solutions and some of these we do not know of, but we will help find them.”
The fact that countries like Denmark are seeking and studying the use of blockchain to directly further humanity show that there is promise and great potential in this innovation.
“Denmark is at the forefront when it comes to innovation – also in the development cooperation. That is why I am proud to present this report.”
Use Cryptocurrency to Process Fast Transactions
The report suggests that humanitarian organizations should look into utilizing blockchain. It elaborates by mentioning that required funds can be transferred faster and safer using cryptocurrency to those locations of the world where assistance is needed most. The report also suggests that legal papers and documentation can be digitized to ensure transparency and prevent corruption, which are steps that could translate to more effective development aid and better protection of the rights of marginalized groups.
The report also recommends that using blockchain technology could lead to the ability of fast transfer of funds without the need of middlemen and or without paying a significant fee to facilitate the transaction.
It was suggested that development aid could be transferred directly from Denmark to recipients in poor countries with the usage of cryptocurrency.
It goes on to list corruption and confiscation of land rights as instances that could be eradicated. For example, India looks at blockchain as a tool to solve the country’s problem of land register bribes by using the distributed ledger technology to ensure transparency and prevent any fraudulent entries.
The report further notes that using blockchain technology in such situations also makes sure that individual owners have the required control over their own data and pertinent rights – whether they are in regard to land, health education or information.
Denmark might move forward with the proposed solutions
The Danish Ministry of Foreign Affairs is looking into finding solutions for development challenges by using blockchain.
This also hints at the possibility of Denmark becoming the first donor country to transfer aid by using cryptocurrency, provided that the country moves forward with such a project.
The report is available for download from the website of the Danish Ministry of Foreign Affairs.