The UN Department of Economic and Social Affairs has released its report "World Economic and Social Survey 2018" in which it covered the role of cryptocurrencies and blockchain technologies in the real world. The authority stated that these technologies can help to get rid of the need to trust centralized institutions, reduce red tape as well as create new business models and boost management efficiency.
"Cryptocurrencies represent a new frontier in digital finance and their popularity is growing," believe the authors of the report, referring to the creator of Bitcoin Satoshi Nakamoto and his proposed model.
At the same time, these frontier technologies also bring certain concerns, as added the Secretary-General.
Speaking about digital assets, the blockchain technology is already used to register property rights, identify people, and prove the origin of food and medicine. With crypto transactions, people can exchange the value despite the lack of physical availability of financial service centres. These technologies are believed to entail appearance of new business models, though cryptocurrencies require regulation as well. The Survey uses as an example a toke so-called climatecoin that is designed to become a foundation for the global market of carbon emissions. Specifically, the toke may "allow a peer-to-peer exchange of carbon credits".
"The innovativeness of this system lies in the way in which the various parts combine to create the trust and guarantees that the traditional financial system derives from institutions and regulation...The traditional system relies on a complex armature of reporting, oversight and implicit or explicit guarantees, ultimately backed by the reputation of the central authority. As such, the blockchain technology presents the possibility—a first in the field of finance!—that trust in institutions backed by a government can be replaced by trust in computer code,” the report says.
In addition, the UN together with the World Identity Network is reportedly examining the possibility of using the blockchain technology to fight against the trafficking of children. For now, the world authorities, including the UN and World Identity Network, are considering the possible implementation of blockchain registration of children.