Denmark to use a cryptocurrency to help developing countries

Denmark is planning to use a cryptocurrency to provide humanitarian assistance, the first such instance of a donor state using blockchain technology for humanitarian efforts. To this end, a report was developed by the Danish Ministry of Foreign Affairs, Sustania Analytical Center and Coinify (Europe’s largest cryptocurrency platform) to examine how blockchain technology can solve problems that arise when providing assistance to developing countries. Specifically, the report identified how blockchain technology can provide fast and safe money transfers as well as which cryptocurrencies (or perhaps a completely new one) would be best-suited for humanitarian assistance.

While blockchain technology is still developing and is not yet fully-trusted, some specific test projects have already been identified, including: (1) a project for working with off-the-grid sources of renewable energy and (2) a project to allow for donations to specific projects via the use of “smart contracts”.

It is widely believed that blockchain technology can help solve many problems of developing countries. In India for example, there are plans to use it to fight fraud in the real estate industry.

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