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olakunle.alao@ucdconnect.ie
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Blockchain Theory
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The diaspora bond – a bond issued by a country to its expatriates – will be a good use case for blockchain technology. Many developing countries have already latched onto the potential of the diaspora bond in providing seamless and cheap finance for infrastructure development. In Ethiopia for example, the diaspora bond has been significant in building the Grand Ethiopian Renaissance Dam (GERD). The current framework for pooling funds for the diaspora bond is inefficient, non-transparent and liable to hijacking by oppressive governments. Blockchain technology can remove these challenges and make the process more efficient and reliable. Overall, it will afford expats the confidence that their investment is in safe hands and that they will get their yield on the maturity date. Blockchain technology will ensure that transactions made by expats are verifiable, immutable and secure. Moreover, the funds registered in the blockchain cannot be tampered with. It will also reduce the inefficiencies and costs associated with cross-border payments. Lastly, an intelligent smart contract can be used to control access to funds and automatically pay-out yields due to expats on the maturity date of their investment.

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