The Ministry of Foreign Affairs of Denmark announced recently that they are exploring various ways on how blockchain can be used in the distribution of humanitarian aid. The ministry has placed a bid to investigate ways in which the digital currencies can help deliver foreign aid to most impoverished regions of the world.

The blockchain is basically a ledger system that tracks the digital information and can provide digitized documents and agreements to curb the fraudulent records, and allows faster and safer money transfers to all emergency hotspots across the globe through the use of cryptocurrencies.

For quite some time, cryptocurrency has drawn a lot of interests from various public-sector organizations and non-governmental organizations including the United Nations that used Ethereum as a means to deliver humanitarian aid to refugees in a pilot study conducted sometime this year.

Denmark wants to emulate the idea and according to the report released by the Ministry of Foreign Affairs in collaboration with Sustania, the country will be the first donor country to transfer foreign aid via digital currencies. The potential benefit from such a move is focused on the eradication of the financial intermediaries in the process. Instead of the funding going through the ‘middlemen’, the donor country could send directly to the foreign government or group that is receiving the aid through cryptocurrencies.

Ulla Tørnæs, the Danish Minister for Development Cooperation stated the use of blockchain and digital currency is one of the technologies that can help the country to create new tools for development cooperation. The diplomats from other countries such as the US have also started considering the opportunities available for adopting blockchain as a means for delivering foreign aid.

Cryptocurrency is basically a perfect means that the aid organizations can use to respond to the crisis across the globe. Blockchain-based digital money is safe and transparent and arrives at the email instantly according to Marianne Haahr of Sustania.