Oct 2016 by abraham, Newbium
UNDP Develop Blockchain As Payment Instrument – More Effective and Efficient Financial Transaction Fees .
Develop Blockchain UNDP, (United Nations Development Programme )
Through the Alternative Financing Lab launched a year earlier, seeks to develop microfinance applications. Thus allowing the delivery of funds to each other. Attempts to reduce recidivism in financial transactions.
UNDP’s described on the blog, that previously existed SDG funding gap of $ 2.5 billion. However, the drainage of ODA funds still flow to developing countries. Even the number continues to increase from year to year.
UNDP seeks to increase sources of funding. However, instead of organizational development is a priority, both from the government and not of the government.
Meanwhile, alternative financial market in Europe grew significantly in 2015. While the global investment market projected to grow more than 3 trillion dollars. An increase in the investment market projections into the background UNDP, and formed Alternative Financing Lab.
The formation of the Alternative Financing Lab, seeks to conduct a series of experiments in trying a new financial mechanism. One is the focus of development is to Blockchain.
Projects carried out secretly this seems not be done alone by the Alternative Financing UNDP Lab’s formation. But by working with multiple developers from Serbia and Moldova.
Then why Blockchain? UNDP appears to have put the interest in using Blockchain that bias is used in transferring the funds in cash. In fact, UNDP in May and was looking for a partnership to develop a means of payment based Bitcoin.
UNDP developed Blockchain feeling Blockchain can be a more effective way to transfer funds. In addition, it can also track the direction of the departure of the fund. The positive aspect, considered quite useful to be applied in the field.
“The field of global development needs to access a system entity that is more scalable, secure, flexible, cost-efficient and sustainable in the long term”, as outlined in the UNDP blog.
Earlier, in Serbia, UNDP has also been working with AidTech. They devised the concept of proof of delivery of funds using blockhain for a cheaper cost. This effort was made to cut shipping funds typically use intermediaries such as Western Union.
In the financial sector, the pace of technological progress using this Blockchain has surprisingly had a significant impact. Through a paper the Bank of England , the research on digital currency based distributed ledger has improved as much as 3% of GDP.
The positive trend of the use of this technology, will be able to increase the sources of financing other funds. Even in the next few months, the project is about to be expanded based blockchain.