Ant Financial, the finance affiliate of the Chinese digital marketplace Alibaba Group Holdings Ltd, has created a private blockchain to record charity donations linked to Alipay (a PayPal equivalent) on its platform Ant Love. With this platform, users will be able to track their donations.
Ant Financial is building a public ledger to record the transactions, but for now access to it is limited to Ant itself. In future, Bloomberg reports, the company aims to grant access to other charity organisations and auditors.
Charities in China are supportive of the use of blockchain technology for greater transparency in the use of donations, Bloomberg reports. They hope this will to help them regain public trust following a series of scandals in which donations were misappropriated. Levels of charitable donation have been affected by the loss of trust, even for charities with no history of misconduct.
Scandals aside, the ability for investors and donors alike to be sure how and where their money is used is significant. For instance, it could incentivise funders motivated by impact, and make it easier for organisations to connect benefactors and beneficiaries, enhancing the personal side of giving.
Ant Financial is also looking at applications of Blockchain for investment in entrepreneurs and small businesses.