Bloomberg Technology/Jonathan Tirone: Banks Replaced With Blockchain at International Food Program

Bloomberg  Technology

Banks Replaced With Blockchain at International Food Program
By Jonathan Tirone
Fri Feb 16 14:31:07 2018
From

    UN organization tests digital wallets built on Ethereum
    Technology that underlies bitcoin cuts bank transfer costs

Bitcoin: What’s Coming in the Year Ahead

International officials are discovering they can sometimes avoid bank fees by replacing currency transfers with the technology at the heart of Bitcoin.

The World Food Programme is expanding its blockchain-payments system, said Robert Opp, a director of the United Nations effort that feeds as many as 100 million people across 80 countries. The agency expects to cut millions of dollars in bank transfer fees by switching to distributed ledgers based on Ethereum’s digital-currency network, he said.

“We felt we could replace the services offered by banks with blockchain,” said Opp, who manages innovations that help WFP better spend its annual $6 billion budget. “Blockchain helps promote collaboration by providing enormous amounts of data.”

The adoption of the distributed-ledger technology shows how companies that need to make money transfers, register sales or even tally votes are picking and choosing among innovations of the Bitcoin revolution, many times choosing not to use the digital coins associated with them.

Digital registries hosted on a worldwide network of computers are being tested in many settings for potential to reduce bank wire-transfer costs. Ethereum allows users to issue so-called ether tokens that can be tailored to specific needs. The Ether coin has jumped in value in the last three months.

WFP began developing its blockchain in 2016 and currently is testing the system with 100,000 Syrian refugees who receive food assistance in Jordan. The program in Jordan alone could save $150,000 a month and eliminate 98 percent of bank fees related to transfers, according to Bernhard Kowatsch, the head of a WFP innovation lab in Munich.

“We’re putting in place a financial infrastructure,” Opp said. The UN program distributes about $1.4 billion annually of food vouchers and digital entitlements, he said.

For more on cryptocurrencies, check out the Decrypted podcast:

For more on cryptocurrencies, check out the Decrypted podcast:

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE
Have a confidential news tip?
Get in touch with our reporters.
 
by Taboola
Sponsored Links
From The Web
Flight Prices You're Not Allowed To See!FlightFinder
Flight Prices You're Not Allowed to See!Save70.com
Top 6 Digital Coins That May Be Worth More Tha…WomenArticle.com
The 10 Best Countries to Start A New BusinessBored Articles
Hotel Prices You Will Not Believe ExistSave70.com
The Ultimate Cheap Flights Finder is Here!tripsinsider.com
Crypto
markets
These Crypto Investors Want Revenge on the Scammers Who Ripped Them Off
by Olga Kharif and Rob Urban
Coinbase Says Customers Who Got Wrongly Charged Will Get Refunds
Trader Charged With Stealing $2 Million in Cryptocurrencies
technology
Crypto Trading Ban Downplayed by South Korea After Backlash
by Sam Kim and Kanga Kong
Video
Mark Cuban on Russian Hacking, Social Media, Blockchain
Mark Cuban, owner of the NBA's Dallas Mavericks, discusses Russian meddling in the U.S. presidential election, social media, blockchain technologies and cryptocurrencies. He speaks on "What'd You Miss?" from the NBA All-Star Technology Summit in Beverly Hills, California. (Source: Bloomberg)
Preparing a Bitcoin Inheritance
Is Your Computer Mining Cryptocurrencies?
Inside the Current Cryptocurrency Landscape
Here's Why Bitcoin Risks Crashing to $900
The Fundamentals
Bitcoin: What’s Coming in the Year Ahead
These Digital Coins Soar (or Fall) With Bitcoin
Making Sense of Bitcoin and Its Wild Price Ride: QuickTake Q&A
What's the Difference Between Bitcoin and Blockchain?
More on Crypto
Brooklyn Bitcoin Mine Causes Static for T-Mobile Users
Todd Shields
Bitcoin Uber-Bull Tom Lee Predicts a New Record High for July
Kailey Leinz
Austrian Bitcoin ‘Scam’ Triggers Police Search Across Europe
Boris Groendahl
Spanish Party Weighs Tax Incentives to Lure Blockchain Firms
Esteban Duarte
Bitcoin Hits $10,000 in Accelerating Recovery From Plunge
Camila Russo
Move Over, Bitcoin. The VIX Has You Beat for Volatility
David Wilson
‘Cryptojackers’ Dig Into Your Phone to Mine Their Coins Cheaply
Olga Kharif
Munger Calls Bitcoin a ‘Noxious Poison’ Government Should Tackle
Noah Buhayar
Coinbase Releases Tool For Merchants to Accept Cryptocurrencies
Camila Russo
Next-Generation Crypto-Ledgers Take the Block Out of Blockchain
Olga Kharif
Crypto Mania and Spanish Soccer Are Winners for Plus500
Joe Easton
Bitcoin Is Back? Cryptocurrency Surges After Breaching $9,000
Nour Al Ali
Terms of Service Trademarks Privacy Policy ©2018 Bloomberg L.P. All Rights Reserved
Careers Made in NYC Advertise Ad Choices Website Feedback Help