Blockchain technology promises to bring a tough fight against poverty in Latin America and the Caribbean (LAC).
LAC Tap Blockchain to Tackle Poverty
According to a report by Borgen Magazine, LAC are using distributed ledger technology (DLT) to free the region of poverty. While LAC are leading emerging nations in start-ups and women-owned businesses, countries within the region are still struggling to control poverty.
People living in impoverished regions in LAC are perpetual victims of fraud, corruption, and legislative inefficiencies. However, farmers in the region are slowly but steadily securing the land titles that were illegally stripped off of them in the past – all thanks to blockchain technology.
Corruption and fraud have had a significant role in ensuring the communities in LAC remain within the bounds of poverty. Corruption also makes it near impossible for people living in the region to access daily survival services such as treatment, education, and health services.
According to the Transparency International Survey, more than 55% of LAC’s population are not satisfied with the government’s handling of corruption while more than 55 million of the people who used a public service in a 12-month period reported being blackmailed.
Blockchain technology promises to address such dishonest practices in the region through its many innovative features including permanence of record, transparency, and decentralization.
In addition, blockchain can also be seen having a strong financial impact on the region’s populace. Because impoverished populations often face discriminatory practices, they lack a credit history or don’t possess appropriate identification that hampers their chances of financial inclusion.
DLT aims to fix this via the use of cryptocurrency tokens as “fungible digital assets that can be used as mediums of exchange inside of the issuing blockchain project’s ecosystem.”
The report reads in part:
“The United Kingdom start-up, Humaniq Ethereum, whose main audience is developing the nation’s poor and unbanked populaces, crafted a blockchain-based app user profile system that uses facial and voice recognition with the identification process. This method takes less than 30 seconds and can be completed with a smartphone, which 70% of LAC communities have.”
Blockchain in South America
Akin to everywhere else in the world, blockchain technology is making serious inroads in South America with several countries in the continent embracing the emerging technology to better their administration.
As previously reported by BTCManager, the Chilean Energy Minister had unveiled a blockchain-based pilot for energy data.
On a recent note, JBS S.A., Brazil’s largest meat packaging company announced that it would use blockchain technology to fight uncontrolled deforestation in the country.
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