Red Cross of Norway, Denmark and Kenya Adopt Blockchain Technology to Boost Aid Delivery
The Red Cross societies of Kenya, Denmark, and Norway have adopted a two-year effort to help combat a need for funds to purchase goods and services in these countries. Currently, the barter process reigns supreme, and transactions are recorded on paper, according to a Reuters report.
The two-year effort will include the use of local currencies that are supported by blockchain technology. The hope is that this process will lead to an improvement in economic activity. According to the report, the project’s goal is to promote utilization of $1 billion a year in aid that is provided in these countries. The process has already been tested in Ethiopia and Kenya and it has shown success in communities in need, and it involves the use of a credits system.
Adam Bornstein, who works for the Danish Red Cross, shared in the Reuters report that not everyone is pleased about the effort. For instance, several banks in Kenya are concerned that credit offerings could lead to a more sophisticated community, which will then undermine the need for loans.
It will certainly be interesting to see how this new blockchain adoption will impact the communities in these countries over the next two years.