The Ministry of foreign Affairs of Denmark has released a new report that discusses the use of the blockchain in the allocation of international aid.
The study, prepared jointly with blockcanvas startup Cochinify and analytical center Sustania – an attempt to explore the ways technology can assist in assisting impoverished regions. This area has attracted interest from a number of public sector organizations, including the United Nations, which used
ether as a means of assisting thousands of refugees in the pilot program earlier this year.
Among the proposals contained in the report is to use a blockchain as a way of sending help from the citizens of Denmark to those in need. The report says that Denmark might «become the first country to provide economic assistance with the use of cryptocurrency».
Possible advantages of this method are mainly associated with the elimination of financial intermediaries from the process. Instead of financing, passing through the traditional financial system, countries will be able to send cryptocurrency directly to foreign governments or groups that collect help.
«There are huge opportunities for implementing technologies in this area. The blockchain and cryptocurrency is just some technology that can give us new tools for our projects,» said Ulla Ternes (Ulla Tørnæs), head direction of cooperation for development.
Diplomats in other countries, including the United States also began to consider the blockchain as a possible tool for channelling international assistance.