In the last decade, foreign aid has helped alleviate poverty and helped to address some of the world’s greatest issues. But as you may recall from the news, not all foreign aid is being used for its intended purpose.
In fact, a shocking amount goes to waste due to corruption and fraud. It turns out that this problem can be solved with a decentralized cryptocurrency like Bitcoin. Bitcoin is a new technology that gives users a way to send and receive money without going through banks or governments.
This means that there are no middlemen taking cuts or charging fees. It also means that transactions are fast and cheap – even across continents – because it doesn’t cost anything for anyone involved in the transaction
The bottom line is, Bitcoin may be able to make good on its promise of making “peer-to-peer” banking a reality since it removes any need for central authority. And if we want to make sure our financial donations reach those who need them most, we’ll need an alternative system.
Let’s talk about how it prevents government corruption and helps improve the effectiveness of foreign aid. Foreign aid is often taken with malicious intent, but bitcoin can prevent this from happening.
It has been roughly 60 years since Western countries began investing heavily in poorer countries in the mid-20th century; Over the last five decades, more than $4 trillion dollars were donated (60 percent came from government and private companies, and 40 percent came from charitable foundations.)
Although charity and selfless acts of kindness can be inspirational, there are many obstacles to the distribution of aid that prevent these goals from being fully achieved. The first obstacle is that foreign aid is often distributed by corrupt autocrats who steal the funds.
There’s a brazen case of foreign aid corruption with former president Mobutu Seko, who stole funds for various purposes while his people suffered in poverty. Bureaucratic middlemen make things worse by siphoning away money gradually by using vast amounts of bureaucracy, which delays delivery or diverts its destination without repercussions.
Oxfam researchers confirmed that 7% of the $28 million US donations meant for Ghana ended up in Ghana between 2013 and 2015. Different studies suggest the leakage rate of foreign aid can vary from case to case. There have also been instances, such as Venezuela, where corrupt or dictatorial governments have blocked foreign aid.
Recently, western countries including the United States were supplying foreign aid to revolutionary groups within Venezuela; as a result of this punishment (which was retaliation), the current government has blocked any form of external help from their citizens and shut down their banking system which prevented people from getting resources they need.”.
The Unbelievable Possibilities of Bitcoin!
The Bitcoin network is decentralized and eliminates the middleman in transactions. With Bitcoin, governments or banks are not required to take part in every transaction. In order to reach the final recipient, your hard-earned money has to pass through many administrations when fiat is used for transactions.
Every third party involved in these types of situations steals some of your money off the top because they are handling your money. But with Bitcoin that’s not necessary – you can donate directly peer-to-peer without any intermediaries at all due to blockchain technology. This ledger records every transaction that occurs, which is accessible to relevant parties afterwards; the information on this ledger is also stored across several different computers, so everything stays really safe and secure.
One of the benefits of using bitcoin is that transactions are decentralized and free. The benefit is that you don’t have to use a middleman, like a bank or government, to manage your transactions; you also don’t have corrupt foreign governments interfering with your aid. There are no ways for the regime (government) in Venezuela to steal money from you through donations made through bitcoin, because all financial contributions made through bitcoins cannot be traced back.
The corruption of governments and bank account freezes seem like problems that only exist in western countries, but these are issues faced by billions of people around the world. Freedom fighters, poor communities, and corrupt governments are increasingly turning to bitcoins as a beacon of hope.
Via this site.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
