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7 USE OF DLTS FOR FINANCIAL INCLUSION AND IN DEVELOPING COUNTRIES 124

Billions of dollars are being spent on applications of Table 3 shows indicative current uses or tests
DLTs, from new national ID systems where a person of DLTs in developing countries. Annex C provides
can be provided with a unique ID that they can share; additional examples of use of DLTs in developing
to tracking of assets; to settlement of financial trans- countries from a financial inclusion focus.
actions; to digital rights management; and to the As noted earlier, smart contracts that are self-exe-
development of crypto-currencies such as Bitcoin. cuting and embedded into a blockchain can enforce
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Currently, the foundational layer and infrastructure legal contracts containing multiple assets and
necessary to support a rich ecosystem of DLT-based enforcement or performance triggers. As Figure 3
applications and services is being established. The shows, this could relate, for example, a smart con-
robustness of the technology has piqued the interest tract that provides insurance for crop failure where-
of financial institutions, regulators, central banks, and by small farmers in developing countries are auto-
governments who are now exploring the possibilities matically paid out by insurance companies based on
of using DLTs to streamline a plethora of different externally-derived micro-climate pattern data linked
public services. The reduction of agency costs and to the smart contract that over a period, signals
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auditable traceability using DLTs may help to facili- drought conditions.
tate trade as well as ensure compliance with specific
goals regarding sustainability and inclusion.
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Table 3: Indicative Uses of DLTs in Developing Countries

Product Type Example Countries Implementation Partner(s)
Agricultural Value Chain India; Cambodia USAID; IBM, Oxfam
Aid Distribution Jordan, Vanuatu Oxfam; Consensys; Sempo
Credit Bureaus Sierra Leone Kiva, UNDP
Digital Fiat currencies Barbados; Marshall Islands Bitt; Central Banks
Digital Identities Sierra Leone Kiva, UNDP; BanQu
Food Supply Management Kenya IBM
Food Aid Distribution Jordan World Food Program
Interbank Transfers Philippines, and Asean countries Ripple; ConsenSys
Land/property registries Ghana, Democratic Republic of Congo; ConsenSys
India
Livestock Tracking Papua New Guinea ITU
Local Transportation China Shenzhen Municipal Taxation Bureau
and Tencent,
Payment Switches Tanzania, Pakistan, Philippines Bill & Melinda gates Foundation
Remittances Philippines; Ghana, Kenya; Morocco; Ripple, Bitpesa, e-piso; e-currency
Nigeria; Senegal; Philippines
Supply Chain Management Zambia BanQu
Trade finance India, Seychelles IBM; Deloitte; Barclays, Wave
De-confliction Indicator Globally Cap Gemini 128

22 Security Aspects of Distributed Ledger Technologies