In most affluent nations, the main use of cryptocurrency involves acquiring, trading, or using it to make more money. However, in areas with limited access to financial services, innovative humanitarian organizations are exploring the use of micro-blockchain ecosystems.
Hope for Haiti planned to launch a cryptocurrency pilot program in the summer of 2021. The program aimed to provide 150 mothers with cellphones, digital wallets, and payment cards utilizing near-field communication technology. These mothers, part of the community nutrition program, were supposed to receive $50 per month in USD for six months to spend on essential family needs. Local vendors were trained to accept cryptocurrency payments. However, a devastating earthquake struck Haiti, forcing Hope for Haiti to shift its focus to disaster relief. The organization received significant cryptocurrency donations to support its relief efforts.
Sandra Uwantege Hart, previously Oxfam International’s blockchain innovations and cash transfer lead, had plans to launch a cryptocurrency pilot in Vanuatu. Despite facing challenges like Cyclone Harold, which hit Vanuatu just before the project’s launch, Oxfam managed to scale its UnBlocked Cash solution to support a larger number of households and vendors. Uwantege Hart highlighted the effectiveness of a decentralized approach in deploying the system quickly and efficiently.
Uwantege Hart later co-founded Emerging Impact and collaborated with Celo Foundation, Kotani Pay, and Polish Humanitarian Action to incorporate DeFi tools into a cash reward program in Kenya. The initiative streamlined the process of depositing funds directly into Kotani Pay wallets, benefiting Maasai women in rural Kenya.
The experiences from various projects led to the development of Emerging Impact’s Umoja solution, aimed at providing comprehensive humanitarian assistance. CARE Ecuador implemented a digital cash and voucher assistance pilot using Umoja to support women in need. The participants could use electronic vouchers and NFC payment cards to purchase essential items from participating vendors.
The introduction of a blockchain-based, cashless solution proved more efficient than the previous paper-based voucher system. It reduced delivery times, costs, and enhanced monitoring capabilities. The Umoja solution successfully addressed the technical barriers often associated with cryptocurrency adoption, offering a user-friendly experience to participants.
The Hope for Haiti pilot, initially delayed due to the earthquake, resumed with the support of Coinbase, who contributed $150,000 to expand the project. Hope for Haiti and its partners believe that cryptocurrency and blockchain technology have the potential to make a lasting impact in poverty alleviation efforts.
These initiatives demonstrate the evolving role of cryptocurrency in humanitarian aid, showcasing its power to bring relief and support to communities in need. By leveraging blockchain technology, humanitarian organizations are revolutionizing how aid is delivered and distributed efficiently.
Hope for Haiti incorporated Digicel’s mobile cash solution into the cash-out process for vendors, creating a local off-ramp within Haiti’s financial system. Uwantege Hart emphasizes the importance of this integration, highlighting the shift towards financial inclusion rather than just providing financial aid.
Uwantege Hart views humanitarian assistance as short-term and challenges humanitarian agencies to guide people away from dependency on free aid towards a sustainable recovery where they can use assistance to access goods and services regularly.
The focus is on lifting people out of poverty or situations that put them at risk of poverty. Emerging Impact aims to separate wallets while still linking them to payment cards, apps, and personal savings accounts.
Similarly, CARE’s crypto initiative collaborated with savings groups in western Kenya hit hard by the COVID-19 crisis. In Siaya County, a primarily agricultural region, group members requested additional funds to support existing businesses or start new ventures.
Despite the majority of people CARE assists in Kenya being unbanked, many have mobile wallets. Binance’s Blockchain Charity Foundation supported the project by depositing BUSD stablecoin into participants’ Trust Wallets, enabling them to make purchases from local vendors.
Helen Hai, EVP at Binance and head of Binance Charity, describes the project’s innovative approach to delivering cash aid to financially vulnerable individuals at a reduced cost compared to traditional methods. Transactions are traceable and transparent on the public ledger, providing a clear record of financial assistance.
Crypto education was a critical component of the project’s success in Kenya, offering new skills alongside financial support. The aim was to facilitate economic recovery for VSLA members post-COVID-19, using stablecoins and blockchain technology to empower the community economically.
The project in Kenya sought to assess the acceptance and benefits of the technology within these communities and build awareness of financial inclusivity opportunities. Pennotti aimed to introduce DeFi projects to integrate these groups into the crypto world, potentially leveraging staking and yield farming for wealth generation in an accessible manner.
The initiative aimed to help individuals understand the financial benefits without requiring full comprehension of the underlying technology. The goal was to promote economic recovery and financial resilience in communities through innovative and sustainable approaches.
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