Ukraine has Announced a Trial Land Lease Program that Will Use Blockchain
As Blockchain has gained in popularity, it has piqued the interests of officials in countries around the world. In response to the phenomenon caused by the many uses for the cutting-edge technology, many countries are adjusting their policies and even regulations to be more attractive and accommodating to businesses wishing to use it.
One of the countries that has emerged as a surprise leader is Ukraine. So active is the country in terms of adapting to the digital world that Forbes ran a piece on it headlined, “Ukraine Is Silently Leading a Digital Currency Revolution.”
The most recent example of how the country is innovatively taking advantage of the benefits of the crypto space relates to its efforts around land registries. The Ukrainian government is in the midst of testing the use of Blockchain for land transactions as it tries to shed its reputation of being home to some of the most unsavory of such dealings. Given its transparency and security, Blockchain is thought to being an ideal way to address this issue.
While this effort is in a trial phase, Ukrainian officials, as well as those from countries all over the world, will be looking to see just how effective Blockchain can be in increasing efficiencies and improving transparencies.
Here, we’ll discuss how Ukraine is testing the waters of Blockchain’s benefits by using it to power its land registry system.
The Ukraine government is in the process of finding ways to better manage its land holdings. Specifically, the country is auctioning off government land assets to its citizens. The country’s troublesome history of government corruption has impeded the land management process, with many believe the transactions are being structured in unethical ways.
There is the train of thought that a small group of elites control the auction process, providing a breeding ground for corruption. The government continues to be accused of questionable practices, as many are convinced that those who made up the old guard of the Soviet Union, or their descendants, are still in control, and they are still running schemes to line their own coffers. The perception has prevented the country from shedding the negative images of its past.
The problem lies in the way Ukraine’s land registry system is managed. Ukraine facilitates its registry through leases, which allow for property rights to be transferred. The problem is that the method can lead to shady schemes. Many have charged that Ukraine’s current land registry system hurts those who could benefit the most, including rural landowners trying to sell their properties. Also, there are fewer public land registrations, and available land resources are not being used as efficiently as they could be.
To help prove it is ridding itself of old, bad practices, officials set out to find ways to bring more transparency to the process. Blockchain may be just the answer and solution that is needed. Officials are looking to Blockchain to do just that.
Blockchain stamps out bad memories
Given the level of transparency involved in Blockchain technology, it’s no wonder that Ukrainian officials honed in on it to establish more trust about its many government processes, including land registries.
Blockchain allows for transactions, including contracts like those involved in auctions, to be recorded. The information stored on the digital ledger is visible to all participants, so that everyone remains knowledgeable of the happenings related to the contract.
In the case of Ukraine and its auction process, Blockchain may help in several ways.
Details have not been released, but the country’s finance minister discussed plans for the country’s auction process to be moved from a paper-based system to a Blockchain system.
We’ll keep an eye on Ukraine’s efforts, as we continue to monitor the many ways Blockchain is upending the many financial transactions of our lives.