Blockchain as a New Weapon to Protect Human Rights: Denmark Position
Blockchain is a potential application to be used in humanitarian aid. And Denmark is considered to become the first donor country to move funds using cryptocurrencies.
Danish Foreign Ministry sees that blockchain offers new levels of trust that are missing from paper-based contracts.
“There is huge opportunities in bringing the technological development into play in development cooperation. The use of blockchain can give us new tools in the development cooperation toolbox,” Danish Minister for Development Cooperation Ulla Tornaes said.
A report published by the ministry, alongside think tank Sustainia and blockchain currency platform Coinify, investigates how blockchain technology might solve problems in providing development aid, noting that by using cryptocurrency, money can be transferred faster and safer, and without a middleman or fees.
Besides, it will help to digitalise contracts and other legal papers and ensure a more effective development aid and better protection of the rights of marginalised groups.
It will take time to develop trust in blockchain technology, because it’s still unripe. And for that goal some initiatives are being launched. For example the one of Europe’s biggest virtual currency platforms Coinfy, is working to use renewable energy in cryptocurrency payments.
“You will be able to pay with your cryptos directly into a solar panel situated in, for example, an African village and then you would not donate money but electricity,” Coinify’s chief executive Mark Hojgaard told Reuters.