Cambodian authorities roll out blockchain-based digital IDs

Cambodian authorities are preparing to launch a project to issue digital identities based on blockchain technology. This initiative was developed with the support of the United Nations (UN) and the Dfinity Foundation, the creator of the Internet Computer blockchain. The goal of the project is to support small businesses in the country, which often face difficulties in accessing financial services. Blockchain technology and fast, secure identification through digital identities on the UTC platform will help solve this problem.

“Small businesses are the backbone of most economies, and the UTC initiative represents a unique opportunity to bring transparency and increase inclusiveness to a financial system that often fails to meet the needs of entrepreneurs,” the pilot said in a statement.

UN officials said that if successfully implemented, Cambodia's digital accreditation and identity program could be launched in ten more countries, creating a global ecosystem. This will significantly expand access to financial services for small businesses and increase the transparency of financial transactions.

The UN is actively promoting the implementation of blockchain technologies in various countries and areas of activity. For example, the UN's World Food Program (WFP) is using blockchain to distribute aid to refugees in Jordan, allowing for transparency and efficiency in resource allocation. The United Nations Children's Fund (UNICEF) has become the organization's first agency to accept donations in cryptocurrency, highlighting the growing role of digital assets in the global economy.

Despite the positive aspects of implementing blockchain technologies, there are also challenges. Earlier this year, Tether, the issuer of the USDT stablecoin, criticized a UN report that claimed the stablecoin had become a prime crypto asset for money laundering in Southeast Asia. These criticisms highlight the need to carefully monitor and regulate the use of cryptocurrencies to prevent illicit financial transactions.

The introduction of blockchain-based digital identities in Cambodia represents a significant step towards improving small business access to financial services and increasing transparency in the financial system. The successful implementation of this initiative can become an example for other countries, demonstrating the potential of blockchain technologies in solving economic and social problems. Support from the UN and the Dfinity Foundation plays a key role in this process, helping to create a more inclusive and sustainable global financial ecosystem.