- Improving the Delivery of Humanitarian Aid using Blockchain
The Algorand Foundation has launched the creation of a council to improve access to blockchain-based financial aid in times of humanitarian crisis, working with a broad coalition of fintech, web3, and humanitarian organizations.
The purpose of this council is to provide guidance to non-governmental organizations (NGOs) and United Nations (UN) agencies regarding the use of blockchain technology in aid payments. It also intends to provide a blueprint for implementing blockchain-based currency schemes in troubled areas.
Growing Use of Assistance Based on Cash
In the last ten years, there has been a notable transition in humanitarian help from in-kind or service-based support to cash-based assistance. The CALP Network, a pioneer in humanitarian cash and voucher support, estimates that in 2022, cash-based aid will account for $10 billion, or 21% of all worldwide humanitarian relief.
It is anticipated that as humanitarian groups work to deliver relief quickly and affordably while negotiating complicated financial restrictions, the percentage of cash-based aid will rise. The projects of the council will investigate how these issues might be resolved and the effectiveness of aid distribution increased by using blockchain-based payment solutions.
Resolving Issues with Infrastructure and Transparency
Reducing the absence of financial and technological infrastructure in disaster-stricken areas like Afghanistan is one of the main objectives of employing blockchain technology in humanitarian assistance. With the use of blockchain technology, cash-based aid delivery might be streamlined, leading to more effective and scalable solutions.
Furthermore, it’s critical to guarantee transparency in monetary assistance programs. Blockchain technology can offer an unchangeable record of financial disbursements, protecting beneficiaries’ privacy while providing governments, relief organizations, and donors with traceability and verification.
Blockchain Technology is Successfully Applied in Aid Programs
The success of combining blockchain technology with assistance distribution has already been shown by the international payment software HesabPay, which was developed on the Algorand blockchain. HesabPay works with the World Food Programme (WFP) and the WFP Innovation Accelerator to provide support to more than 14,000 people in Afghanistan.
This effort, which is the biggest humanitarian endeavor on a public blockchain to date, demonstrates the technology’s enormous potential and scalability.
The WFP Innovation Accelerator emphasized the scalability and significant impact of blockchain technology in assistance distribution, citing HesabPay’s achievements in Afghanistan. The program seeks to transform the way help is provided by bringing these ideas to a global scale.
Backing from important stakeholders
The impact director of The Algorand Foundation highlighted the exponential rise in direct cash-based humanitarian aid, attributing its future potential to the advantages cash offers to recipients. Transparent, traceable, expandable to millions of beneficiaries, and promptly settled are requirements for effective humanitarian payments. These needs are satisfied by blockchain technology, which is why the Algorand Foundation invested in HesabPay to provide payments for humanitarian help in Afghanistan without sacrificing timeliness or accountability.
The vice president of Circle Impact restated the company’s objective, which has been to empower marginalized groups and people shut out of traditional financial institutions, since 2021. In an effort to promote a new wave of financial inclusion that will improve disaster relief and humanitarian aid, Circle Impact is thrilled to become a member of the Humanitarian Council.
Mercy Corps Ventures has been implementing blockchain technology in the development and humanitarian areas. They have started 16 crypto pilots in more than ten countries in the last four years. In order to facilitate a pipeline of humanitarian pilots, use cases, and insights and show how the problems addressed by the Algorand Foundation are being resolved in real-time, Mercy Corps Ventures is now constructing a Humanitarian Venture Lab.
The CEO of Worldpay’s web3 partnerships and cryptocurrency division emphasized the critical need for quicker, more transparent ways to help victims of humanitarian situations. Aid delivery might be revolutionized by blockchain technology’s unmatched traceability, which would guarantee that money reach those in need as soon as possible. Millions of people facing humanitarian disasters may get life-saving assistance if transactions were completed as quickly and efficiently as those made by Worldpay.
The head of UNDP’s innovation team talked with Algorand about investigating digital payments to improve confidence, speed, and transparency in nations without a strong banking infrastructure. The goal is to assist civil society organizations by means of networks such as Tadamon, which consists of four thousand CSOs.
Distinguished Council Members
Prominent figures from a range of organizations are represented on the council: Robert Pasicko from UNDP; Henri de Jong from Quantoz; Suzana Moreno from WFP Innovation Accelerator; Sandra Uwantege Hart from Mercy Corps Ventures; Mercina Tillemann-Perez from Circle Impact; Paula Gil Baizan from PoliSync Centre for International Policy Engagement; Ahmed Zifzaf from Worldpay; Hasan Fallaha from UNDP Syria; Ali Theyab Al-Zuhairi from UNDP Iraq; Robert Pasicko from UNDP; and Kelly Stablein, an independent humanitarian consultant.
To sum up, the Algorand Foundation wants to improve assistance delivery’s effectiveness, transparency, and scalability through the use of blockchain technology. Through efficient and timely delivery of aid to individuals in need, this program has the potential to completely transform the way that assistance is given during times of crisis.
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