In today’s digital age, it is imperative that governments and public institutions around the world undergo digital transformation, utilizing new technologies and data to develop innovative and efficient public policies. One such technology with a wide range of potential applications is blockchain, which offers the promise of more transparent and accountable processes and the ability to combat corruption.
According to the OECD, blockchain technology is a distributed ledger that records, stores, and provides access to digital transactions without the need for a central authority. Each new record in the blockchain is connected to the previous one using cryptographic methods, making blockchain records immutable.
Various sectors can benefit from the use of blockchain technology, including banking and finance, healthcare, property records, supply chain management, smart contracts, climate change mitigation, voting, and others. This technology allows for the tracking and monitoring of transactions between individuals and institutions, increasing transparency through disintermediation, immutable accountability, power distribution, and peer-to-peer solutions. As a result, blockchain technology can be used to combat corruption by identifying instances of fraud and misuse of public resources. Furthermore, its non-reversibility feature eliminates intermediaries and reduces the possibility of third-party intervention in accountability systems.
In Greece, the public procurement sector suffers from extensive and high levels of corruption. According to the Greece-OECD Project: Technical Support on Anti-Corruption of 2018, bribery and irregular payments are prevalent in the process of awarding public contracts. A survey conducted as part of the project to evaluate the level of trust in the Greek government by companies revealed that most of them believe that corruption is widespread in public procurement managed by national, regional, or local authorities. This situation is significantly higher than the EU average and calls for effective measures to combat corruption through the use of technology such as blockchain.
With its unique features, blockchain technology offers immutable records that are difficult to manipulate, making it a promising solution in the fight against corruption. As noted in a World Economic Forum article, blockchain’s capacity to secure identity, track funds, register assets, and procure contracts, among other applications, makes it a disruptive technology in the fight against corruption. Its tamper-proof and easily accessible nature could provide the Greek public with a real-time window into ongoing procurement processes, empowering them to audit the proper use of public expenditure.
Despite Greece’s adherence to various international conventions and implementation of the National Anti-Corruption Action Plan (NACAP), the country’s corruption perception index has not significantly improved. While the NACAP focuses on high-risk sectors, it does not mention blockchain technology and acknowledges key elements missing for the proper monitoring of laws involving this technology. Additionally, there is no specific regulatory regime for market participants using blockchain technology or cryptocurrencies, and there has been no enforcement action related to digital assets or blockchain utilization in Greece.
Original source: Offlinepost.gr