Pathfinder

Researching the use of stable cryptocurrencies for cross-border payments in IFAD-financed projects

IFAD researched the application of blockchain technology that could pioneer the international development aid arena.

Through Pathfinder IFAD researched the potential application of an innovative, easy and fast solution to transnational payments in foreign currency. This potential application would incorporate payments with stable cryptocurrencies by IFAD-financed projects and would be the first of its kind in the UN and IFI environment.

"With the Innovation Challenge, IFAD hopes to achieve safer, faster and cheaper implementation of its financed projects through innovative payment solutions."

Innovation Challenge Team

RESULTS ACHIEVED

  • This project brought together private sector players and experts who contributed to the final research paper, including the International Chamber of Commerce, the world’s largest business organisation representing 45 million companies in over 100 countries. 

POTENTIAL IMPACT

  • The proposal for “Pathfinder” would reduce bureaucracy through direct payments and alternative payment solutions.   
Mobirise

Recommendations for next steps
(from the project team)

Advanced (scaled up)

We suggest setting up the Pathfinder pilot in a selected country. It would provide a safe environment for suppliers and IFAD-financed projects to take their first steps in the cryptocurrency ecosystem. Within this pilot, IFAD would not play an active role in the set-up of the technology. 

Mobirise

Lessons learned
(from the project team)

We learnt that there is a parallel universe out there, waiting to be tapped into. Just like Pathfinder's first missions to Mars overcame resistance and fear – we now know so much more about ourselves, our potential and that what were dreams only a few years ago are now tangible reality. Many UN agencies, IFIs and central banks have been exploring the potential of cryptocurrencies. Stable cryptocurrencies have been receiving increased attention by these actors. The latter wish to avoid leaving the playing field to private sector actors, and we believe IFAD could have an interest in facilitating these technological developments.

© Copyright 2021 International Fund for Agricultural Development (IFAD)

Start a web page with Mobirise