UNDP pushes blockchain from DPI pilots to deployment

UNDP is stepping up efforts to move blockchain from pilot projects to production digital public infrastructure (DPI), arguing that the remaining challenges are governance, interoperability and trust rather than the technology itself.

The effort took shape during a series of meetings in Paris under the theme “Scaling Blockchain for Public Good,” where policymakers, development organizations and industry representatives explored how to scale blockchain for digital public infrastructure, particularly decentralized identity.

Last month, UNDP said pilots in Haiti, Syria, Kenya, Guatemala and The Gambia reduced blockchain-based digital payment distribution costs from about 10 percent to as little as 2 percent. The agency plans to integrate the technology into its country programs once the necessary governance frameworks are in place.

The discussions, which took place under the theme “Scaling Blockchain for Public Good,” resulted in the creation of the United Nations Development Program’s (UNDP) Blockchain Advisory Group (BAG). The inaugural meeting was chaired by UNDP Associate Administrator Haoliang Xu.

Participants agreed the debate is no longer whether blockchain belongs in DPI, but where it can deliver the greatest public value.

Reflections during the Paris meeting also led to the launch of a Government Blockchain Academy, which will support countries in how they assess, adopt and use blockchain systems.

The aspect of digital payments was particularly emphasized with many of the attendees underscoring the technology’s role in driving financial inclusion, as it is estimated that 1.3 billion people in the world lack formal access to financial services such as bank accounts.

Other issues addressed during the meeting included the need to build collaborative frameworks and partnerships to drive blockchain innovation.

“The future of blockchain for development will depend not only on innovation, but on the institutions, partnerships, and public trust needed to apply it responsibly,” the Alternative Finance Lab (AltFinLab) Lead for UNDP Europe and Central Asia, Robert Pasicko, said.

Early deployments

Several implementation-ready projects were showcased during the meetings. UNDP The Gambia is working with FreedomPay Wallet to ensure transparent digital payments, while Plastiks is collaborating with UNDP offices in Armenia, India, El Salvador and Zambia to support climate circular economy efforts.

Malawi has also developed a digital ID wallet based on blockchain which is currently being piloted. The initiative, which was recently featured in a Global Blockchain Business Council (GBBC) event, is supported by the UNDP and aims to provide Malawians with digital-first identity services.

Mauritania has also unveiled its plan of speeding up the integration of blockchain into its digital transformation implementation. Capmad reports that this comes as part of the country’s digital infrastructure modernization drive. The system will streamline digital payments.

Article Topics

blockchain  |  digital ID  |  digital payments  |  digital public infrastructure  |  pilot project  |  UNDP