Blockchain can reportedly return billions of dollars back to Kenya’s budget.
Blockchain technology can help countries like Kenya from losing billions of dollars to corruption, according to an official at the United Nations’ drugs and crime agency.
David Robinson, the regional anti-corruption advisor at the UN’s Office on Drugs and Crime, believes that new technologies like blockchain will help Kenya combat government corruption and other economic crimes.
According to Nation Media Group on Nov. 3, Robinson claimed that blockchain-based solutions can provide full traceability of transactions, protecting public registries from fraud and forgery. The official said:
“Blockchain technology becomes attractive to the global community and international organizations because it is a tool that can be used to potentially prevent corruption and protect public registries from fraud and tampering.”
Robinson said that technologies like blockchain are an important tool for increasing trust, as corruption represents a breach of the public trust. “Online trust became a key asset for transactions between strangers and building confidence in government,” he stated.
Kenya is reportedly losing up to a third of its budget to corruption each year due to a lack of modern equipment and technology for fighting graft. Failures to track corruption cases reportedly cause the country to lose as much as $6 billion each year.
A number of countries around the world have been looking at both blockchain technology and crypto as potential tools to combat corruption. In September 2020, Denmark’s Ministry of Foreign Affairs released a report analyzing the use of blockchain in the fight against corruption. In July, the chairman of Kazakhstan’s anti-corruption service called on the state to develop a national digital currency to fight corruption in the country.