What if we could transfer money directly to a cause we care about – and take out the cartel like monopolies who eat up the money in the middle? Whilst having full control and transparency over the entire life cycle of those funds? Thats what blockchain could give the development sector.
Currently the international development sector is highly centralised, accountability of action is minimal, and most money goes back in Western donor nations through preferential contracts and the fact that senior staffers eat up most of the money through salaries.
Currently, donations, although accounted for, leaves the donor in the magic position of essentially being unaccountable. For example when projects go wrong, who is responsible and what redress is there? In a situation where any bad press can heavily diminish donations we, the general public, don’t hear much about donations going wrong for a reason. But what can blockchain do about all this?
- We can track money all the way to where its supposed to be going.
- Transaction costs (money transfer services which can be plus £70 a pop, physical labour of someone setting up each transfer and filling in lots of detailed documents about payments, physical costs of someone answering queries, exchange rate loss, payments being held….) gone in a flash.
- Fraud and terrorism severely undermined as every transaction is traceable. We can’t wash the code.
- And of course smart contracts so that we cut time and middle men.
See a previous blog I wrote about money transfers here.