Taking steps to accelerate use of digital technologies has become especially important for the states, municipalities, and nonprofit entities responsible for disbursing CARES Act, HHS, and stimulus grant funds related to COVID-19 relief efforts.
Entities are under significant pressure to distribute an unprecedented level of funding and then be accountable for its use. Transactions must be seamlessly and securely transferred, requiring recipients who qualify for the payments to be easily identified and verified. The distribution of funds must be closely monitored to prevent fraudulent transactions and ensure that every qualifying recipient has received their funds. For grantees, the pressure to maintain transparent tracking and reporting methods and auditable records has only increased.
These circumstances have helped reveal the cracks and roadblocks in existing processes, which, the less digital they are, the more difficult they are to manage. The solution lies in a balanced use of emerging technologies, one of which is blockchain. In this time of heightened scrutiny, scale and need to demonstrate accountability, blockchain provides a traceable, immutable, unalterable record, which in turn adds a new level of trust in the data it connects.