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Keen to promote financial inclusion in developing regions, the United Nations has announced a new partnership with the DFINITY Foundation to roll out the Universal Trusted Credentials (UTC) initiative.
The UTC, created in partnership with a handful of central banks, is a digital credentialing system initiated by the United Nations Development Programme (UNDP) designed to serve as a global verification standard for business enterprises.
The latest partnership with DFINITY is expected to test the practicality of UTC in real-world scenarios, with a pilot scheduled for the Southeast Asian country of Cambodia. Specifically, the pilot will focus on micro, small and medium enterprises (MSMEs) in Cambodia, providing them with digital identities for the ultimate goal of “sustainable development and economic growth.”
“The partnership with the DFINITY Foundation marks a pivotal moment in our efforts to advance digital inclusion and economic empowerment for MSMEs in Cambodia,” said the UNDP. “By harnessing cutting-edge technology, we can create a more secure and accessible digital credentialing system.”
Upon the conclusion of the pilot, the UNDP is eyeing an expansion of the UTC to 10 countries, including Ghana and Singapore—nations that have played integral roles in the project’s proof-of-concept (PoC).
Rolling out a global credentialing system will not be a walk in the park as the UNDP will have to secure the trust of MSMEs that have always eyed traditional finance with a deep sense of mistrust. To win over their hearts, the UNDP says UTC will operate a high level of security while being fully decentralized and tamper-proof.
DFINITY is expected to leverage its Internet Computer Protocol (ICP) to achieve the UNDP’s ideals for decentralization, as analysts laud the streaks of blockchain integration by the UN.
“MSMEs represent the backbone of most economies, and the UTC initiative represented a unique opportunity to bring transparency and increase inclusion within a financial system that often fails to cater to their needs,” said Dominic Williams, DFINITY Foundation founder.
The UN and blockchain
The UN has a long, winding streak of leaning on blockchain to attain its goals, famously using the technology to assist refugees while protecting their identities.
At the end of 2023, the UNDP trained 22,000 staff on blockchain and Web3 to provide employees with technical expertise on digital identities, decentralized finance (DeFi), and asset tokenization.
Apart from blockchain, the UN has turned to artificial intelligence (AI), funding several projects related to public utilities. Instead of an all-out approach, its agencies are advocating robust regulations.
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