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KfW is a state-owned bank in Germany which is the third largest institution, based solely on total assets. To help the progression of the blockchain, they collaborated with the Burkina Faso Finance Ministry, examining the use of fintech in the management of public finance.
A statement on this test was published on December 17thth. KfW he was also involved with the Burkinabe government in June, when they financed the water supply and sanitation facilities in the area with a credit of 7 million euros.
Based on this announcement, the TruBudget app from KfW will be the system used in the Burkina Faso tests. The open-source app will be used over the course of six months, although the test will require the help of Accenture and BearingPoint, which are both global consulting firms.
The application allows you to use blockchain technology for storing and real-time approval of contracts, which means significantly shorter processes. The immutability and transparency of technology also monitors funding to ensure that they are used correctly.
Typically, to manage these types of risks, KfW states that the bank will usually establish an office in the area. However, Joachim Nagel, a member of the executive council, believes in the ability of the blockchain to deal with these problems without creating a completely new base. Nagel added,
"With TruBudget we create transparency for the benefit of all the parties involved and allow donors to use the funds in a safe way, even using directly the structures of the partner country".
Banks all over the world are starting to use the blockchain and most of the reasoning is the same: less documents, less expenses and fewer mistakes. There are currently 26 French companies and five banks that used the R3 blockchain to hold a KYC test, which involved a commercial transaction on paper.
In South Korea, Shinhan Bank has announced its intention to use blockchain technology to support its processes to eliminate human errors and promote efficiency.
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