UNDP partners with the DFINITY Foundation to enhance financial inclusion of MSMEs

The United Nations Development Programme (UNDP) has partnered with Swiss-based blockchain technology powerhouse the DFINITY Foundation to enhance financial inclusion for MSMEs.

UNDP announced the partnership in a press release on July 3, noting that the DFINITY Foundation will leverage the Internet Computer (ICP)’s blockchain technology to develop and implement the UN’s Universal Trusted Credentials (UTC) initiative.

UNDP and DFINITY Foundation team up

UNDP says the DFINITY Foundation will tap into ICP’s decentralized digital identity solutions Internet Identity (II) to create a prototype to be used in a UCT pilot in Cambodia.

According to the UNDP, this project is a major step towards improving digital trust and enhancing financial inclusion for Micro, Small, and Medium Enterprises (MSMEs) across the world.

“The partnership with the DFINITY Foundation marks a pivotal moment in our efforts to advance digital inclusion and economic empowerment for MSMEs in Cambodia,” Marcos Neto, UN Assistant Secretary General and Director of UNDP’s Bureau for Policy and Programme Support, said.

Pilot program will scale to cover 10 countries

Blockchain technology can help add to user security and make digital credentialing systems more accessible, key factors that can drive sustainability and economic growth.

As such, UTC is a solution aimed at further adoption of digital technologies. That includes the use of blockchain-based solutions, Neto added.

Although the pilot targets MSMEs in Cambodia, UNDP plans to scale the UCT solution to reach 10 countries. The initiative is also part of UNDP’s broader goal of leveraging blockchain technology and innovation to bolster achievement of Sustainable Development Goals (SDGs), the organization said in the press release.

The UNDP developed UCT in partnership with the Monetary Authority of Singapore (MAS) among other strategic partners.

Meanwhile, DFINITY Foundation’s partnership with UNDP comes a few weeks after the blockchain company launched API to boost blockchain interoperability.

In June, the Internet Computer announced its Verified Credentials, a solution aimed at enabling efficient and trusted sharing of personal data across Web3.