December 2017 report by Sustainia, Danida and Coinify on the potential of blockchain to “Hack aid”. It proposes three main hacks:
Innovate aid money with cryptocurrency, Turn rights into code, and Programme aid money and agreements. These conflate into a fourth hack: Disrupt the aid model.
The report is quite enthusiastic on blockchain potential and sometimes overlooks on how proposed solutions can actually be implemented, but also presents a number of interesting ideas.
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What's next for Hack the future Development Aid blockchain
Blockchain has the potential to renew development cooperation and humanitarian aid, among other things by using crypto currency and digitalizing contracts and rights and thereby deliver development in a new and potentially more effective way. That is the conclusion in a report released today by the Danish Ministry of Foreign Affairs in collaboration with the think tank Sustainia and blockchain currency platform Coinify.
According to the new report, “Hack the Future of Development Aid”, development cooperation and humanitarian aid organizations can by using the opportunities of blockchain technology perhaps wave goodbye to paper contracts and slow transactions. The Ministry of Foreign Affairs has asked Sustainia, who has written the report, to present the potential of finding new solutions for development challenges by using blockchain. The report emphasis among other things that by using crypto currency money can be transferred faster and safer to the hot spots of the world. In addition, contracts and other legal papers can be digitalised to combat corruption and ensure a more effective development aid and better protection of the rights of marginalized groups.
The Danish Minister for Development Cooperation, Ulla Tørnæs, says: “There is huge opportunities in bringing the technological development into play in development cooperation. The use of Blockchain and crypto currency 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. 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.”
From slow kroner to fast crypto currency
One of the recommendations of the report, or so-called “hacks”, is about using blockchain technology to enable a fast transfer of money without middlemen and fees. By using crypto currency as a support agent development aid can be transferred directly from Denmark to recipients in poor countries. Denmark could therefor consider being the first donor country to transfer aid by using crypto currency, the report says.