Denmark Could Tap Blockchain For Foreign Aid Delivery, Says Report

Denmark's Ministry of Foreign Affairs has released a new report on the applicability of blockchain to foreign aid.

AccessTimeIconDec 14, 2017 at 6:00 p.m. UTC
Updated Sep 13, 2021 at 7:16 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Denmark's Ministry of Foreign Affairs has released a new report that explores how blockchain to might be used in the distribution of foreign aid.

, prepared in conjunction with blockchain startup Coinify and Sustania, a think tank, is a bid to explore the ways in which the technology can help deliver assistance to impoverished regions. It's an area that has attracted interest from a number of public-sector organizations, including the United Nations, which used ethereum as a means to deliver aid to thousands of refugees in a pilot program earlier this year.

Among the proposals: using blockchain as a means to send aid from Denmark citizens to those in need directly. The report suggests that the country should "consider being the first donor country to transfer aid by using cryptocurrency."

The possible benefits of such an arrangement center mainly around the removal of financial intermediaries from the process. Rather than funding going through the traditional financial system, donors could potentially send cryptocurrencies straight to the foreign government or group that is collecting aid.

"There [are] huge opportunities in bringing the technological development into play in development cooperation. The use of blockchain and cryptocurrency is merely some of the technologies, which can give us new tools in the development cooperation toolbox," Ulla Tørnæs, Danish Minister for Development Cooperation, said in a statement.

Diplomats in other countries, including in the U.S., have also started looking at blockchain as a potential vehicle for delivering aid.

Denmark flag image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.