Digital solutions for everyone: KfW releases TruBudget blockchain software
Press Release from 2019-04-03 / Group, KfW Development Bank
- The TruBudget platform developed by KfW is now available to developers free of charge
- In addition to initial practical tests in Burkina Faso and Brazil, other pilot projects are also planned
- TruBudget website goes online
KfW is providing its newly developed TruBudget blockchain platform to prospective partners free of charge as open source software. "We are convinced that the basic concept of this application facilitates very different solutions," said Dr Joachim Nagel, Member of the Executive Board at KfW Group.
KfW developed TruBudget (Trusted Budget Expenditure) to make donor-financed development cooperation projects even more efficient and effective. Pilot projects are currently underway in Burkina Faso and Brazil. Others are in the preparation phase with Georgia and the Global Alliance for Vaccines and Immunisation (GAVI). The German Federal Ministry for Economic Cooperation and Development (BMZ) made EUR 6 million available to KfW for the pilot project.
Blockchain technology makes it possible to manage how donor funds are used transparently and reliably in a way that has not been possible until now. As a result of the lower fiduciary risks with TruBudget, donor funds can be handled via the partner systems in the future. Complex parallel structures and processes for donor harmonisation with high transaction costs are eliminated. Developing countries are equipped to integrate external project financing into their own budgets and manage it themselves. This improves the impact and sustainability of the support.
The concept of the developed platform can be transferred relatively easily to other areas of application. The GAVI international vaccine alliance, for example, assesses to what extent the platform is also suitable for tracking the supply chain of vaccines. Use cases outside development cooperation are also conceivable. KfW is looking for partners who want to use the potential of the blockchain application for their own new ideas and develop it further.