China’s e-commerce giant Alibaba made a big splash into the issue of financial transparency in July when it announced plans to use blockchain technology to track donations that are made to charities and other aid organizations using the company’s online payment platform.
Blockchain — the technology that underpins popular virtual currencies such as bitcoin — has become increasingly associated with transparency and accountability because of its tamper-proof system of record keeping that can be used to publicly track financial flows and other transactions.
Proponents of the technology contend that blockchain systems can be used to monitor government aid, track assets or enforce contracts and can promote the type of open governance and transparency that is needed in developing countries. And indeed, Alibaba’s adoption of blockchain is specifically geared toward promoting greater accountability in Chinese philanthropy, which in recent years has been hit by several scandals involving inappropriate spending. Could a vote of confidence by an industry titan such as Alibaba be just what is needed to mainstream blockchain for development?
About the author
Naki B. Mendozamfbmendoza
Naki is a former reporter, he covered the intersection of business and international development. Prior to Devex he was a Latin America reporter for Energy Intelligence covering corporate investments and political risks in the region’s energy sector. His previous assignments abroad have posted him throughout Europe, South America, and Australia.