Category Archives: Articles

Taking Politics out of Development

 

In 2012 Cambodia received $807 million in foreign development aid. In 2013 Cambodia was ranked the 15th most corrupt country in the world. Taxpayer dollars from Japan, the US, Australia, and other developed nations have poured into countries like Cambodia for decades in an attempt to help the people who live there. In order for funds to reach people in places such as Cambodia, governments have to go through some of the longest serving and controversial rulers in the world such as Hun Sen, Cambodia’s current Prime Minister.  Political deals along with funding and backing between governments were an unavoidable part of the foreign aid equation. Once the recipient government received the funds, there was also no real accountability or transparency in how those funds were used.

Crypto currencies remove governments from the development equation. It simply allows aid money to go directly from donor to cause. A project only needs a QR code and address in order to start receiving funds. Crypto adds transparency to the development equation by making every single transaction accessible to the public through the blockchain. Recipients are accountable only to donors who can see where their money is spent and judge for themselves whether or not to continue supporting projects. This direct type of funding ensures that only the best and most effective development projects last. No favoritism. No bias. No politics.

Crypto Coins for Developing Nations

 

                 What if crypto currency could do something that the old system failed to do? What if it could build up a developing nation? Maybe instead of trying to compete with the traditional financial system, crypto currency advocates can focus on all the unique advantages that crypto currencies offer over fiat:

 Crowdsourced Aid

  • Instead of mixing up politics and governments into development. Instead of indirectly supporting certain leaders in order to get to the people, people can help people directly. Crypto can be used to fund whatever projects people feel strongly about. The managers of these projects are held accountable to the funders directly instead of an organization. Kickstarter for development.

The Public Ledger

  • Corruption is a huge problem in many less developed countries. Billions of dollars which are supposed to go into helping people end up going to some corrupt asshole. Continue reading

Bitcoin Foundation Q1 2014 Proposal

Bitcoins for Development: Cambodia

 Overview:

We propose to introduce and promote the use of Bitcoins in Cambodia as a tool for development. Cambodia is a Least Developed Country ranked 138th in the Human Development Index (HDI) according to the United Nations. It is the 15th most corrupt country in the world and only 3.7% of the population have a formal bank account.  Bitcoins allow nearly any one with an internet connection access to e-commerce and low cost money transfers. Bitcoin’s public ledger solves the corruption and bribery problem that plagues Cambodia’s businesses and foreign aid organizations. Spreading the use of Bitcoin in a developing nation further standardizes it as a global currency and its spread to different areas of the world protects the long term legitimacy of that currency.  If Bitcoins can effectively help Cambodia’s poor and unbanked, then the project model along with crypto currencies in general will become a legitimate tool in helping the developing world solve many of its most common problems.

Bitcoins will be brought to Cambodia through local awareness, knowledge, and usage. Continue reading