Puerto Rico wants to combat corruption with blockchain technology

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Following one other corruption scandal, the federal government of Puerto Rico is reportedly in search of to enhance its anti-corruption efforts by adopting blockchain know-how.

Puerto Rican Home Speaker Rafael “Tatito” Hernandez introduced that lawmakers will maintain conferences with native blockchain fanatics this month to debate the potential adoption of blockchain know-how to cut back corruption.

The implementation of blockchain and good contracts may convey extra transparency and accountability to the general public sector, the official stated at a Puerto Rico Blockchain Commerce Affiliation convention, Bloomberg reported on Dec. 6.

“We’ve got an actual credibility drawback and this may be a part of the answer,” Hernandez stated, including that there’s additionally a broader effort to make Puerto Rico a hub for crypto and blockchain innovation. In keeping with the official, the rising business might be a means for the bankrupt commonwealth to revive its financial system.

“Again within the 60s and 70s we had the area of interest of producing. […] This can be a new area of interest, a brand new alternative to create jobs,” Hernandez stated.

The speaker’s feedback got here amid rising corruption issues in Puerto Rico as an area mayor reportedly pleaded responsible to accepting greater than $100,000 of bribes in money final week.

Puerto Rico is just not alone in exploring the potential anti-corruption capabilities of applied sciences like blockchain and digital foreign money. Final yr, the Ministry of Overseas Affairs of Denmark reported on blockchain’s potential to fight administrative and political corruption. The United Nations’ medicine and crime company additionally advised Kenya to use blockchain to fight authorities corruption in November 2020.

Associated: Gibraltar’s government plans to bridge the gap between public and private sectors with blockchain

Whereas a number of jurisdictions are cryptocurrencies’ underlying know-how as a software to chop corruption, some governments like Russia prohibit its deputies and officials from holding crypto, citing corruption issues.

One of many world’s most corrupt international locations, Russia may in reality use crypto to cut back corruption, in response to Maria Agranovskaya, a authorized legal professional and fintech knowledgeable within the Russian State Duma. Agranovskaya advised Cointelegraph that money is far more standard for criminal activity like corruption as a result of it’s harder to hint:

“In case you convey correct KYC and AML initially, crypto flows might be way more straightforward to hint, solely correct guidelines of the sport must be in place.”