Blockchain
Global fintechs and web3 giants team up to scale up blockchain-based cash assistance for humanitarian crises
Humanitarian Council members include the Algorand Foundation, Circle, Worldpay, Mercy Corps Ventures, HesabPay, the United Nations Development Program and others
BARCELONA, Spain, June 26, 2024 /PRNewswire/ — Today, in a move led by Algorand Foundation, a coalition of fintech, web3 and humanitarian organizations announced the formation of a council that seeks to increase access to blockchain-based cash assistance during humanitarian crises. The goal of the council, among other activities, is to advise UN agencies and NGOs on the use of blockchain technology for aid payments and to develop a roadmap for successful piloting of cash programs based on blockchain in areas in difficulty.
Over the past decade, the United Nations and NGOs have started to offer more cash assistance (versus in-kind or service-based assistance). According to CALP networka leader in cash and voucher humanitarian assistance, this form of assistance now comprises 21% of all international humanitarian aid, reaching $10 billion in 2022, and this percentage could potentially be much higher (source). Humanitarian organizations are working to provide this kind of aid as quickly and cost-effectively as possible, while dealing with increasingly complex financial regulations. That said, the projects under the purview of this council will explore the potential benefits and opportunities of blockchain-based payment solutions in addressing these particular constraints.
The purpose of using blockchain is first and foremost to compensate for the lack of financial and technological infrastructure in humanitarian locations such as Afghanistan and others. In these regions, the application of blockchain technology could bring greater efficiency and ease in the provision of cash aid, making an even larger scale response possible.
Increasing cash aid also requires transparency. Cash aid programs must be traceable and verifiable without violating the rights of beneficiaries. Using blockchain, organizations can keep an immutable, immutable record of how money was distributed, without revealing how it is used by the recipient. This model protects the privacy of those in crisis while maintaining the tracking and verification that aid programs, donors and governments need.
Powered by Algorand, global payments app HesabPay is already demonstrating the effectiveness of merging blockchain and aid delivery. It facilitates the world’s largest humanitarian project ever run on a public blockchain, bringing support to more than 14,000 families in Afghanistan in partnership with the United Nations World Food Program (WFP) and supported by the WFP Innovation Accelerator.
Bernhard Kowatsch, head of WFP’s Innovation Accelerator, added: “HesabPay’s success in Afghanistan highlights the significant impact and scalability of this technology. We are eager to scale these innovations globally to revolutionize aid distribution.”
“Cash-based direct humanitarian assistance has grown rapidly and is the future due to the extraordinary benefits cash provides to beneficiaries. To be effective, humanitarian payments must meet several requirements: immediate settlement, easily scaled to thousands if not million beneficiaries and transparent and traceable,” said Matt Keller, director of impact at the Algorand Foundation. “Blockchain meets all these requirements and is one of the reasons we invested in HesabPay, which delivers humanitarian aid payments to Afghanistan without sacrificing time or liability.”
“At Circle Impact, our mission from 2021 is to empower underserved communities and reach people who have traditionally been excluded from financial systems. We are excited to be part of the Humanitarian Council, where we can cultivate a new generation of financial inclusion aimed at enhancing humanitarian aid and disaster relief,” said Mercina Tillemann-Perez, vice president of Circle Impact.
“Launching 16 crypto pilots in over 10 countries over the past 4 years, Mercy Corps Ventures has been actively implementing first-of-its-kind real-world use cases in the humanitarian and development context leveraging blockchain technology. We are now building a Humanitarian Venture Lab with a series of humanitarian pilots, use cases and insights that show where the challenges the Algorand Foundation is facing are unfolding – and being solved – in real time,” said Sandra Uwantege Hart, head of the Humanitarian Venture Lab at Mercy Corps Ventures.
“Humanitarian crises require faster, more transparent aid solutions. Blockchain technology has the potential to revolutionize aid distribution through unprecedented traceability. If this initiative can match the speed and efficiency of the more than 40 billion transactions that Worldpay processes every year, there is an opportunity to provide life-saving support to millions of people facing humanitarian crises, ensuring that funds reach those in need without delay,” said Ahmed Zifzaf, head of crypto/web3 partnerships for Worldpay.
“At UNDP we are exploring with Algorand how digital payments can bring transparency by making payments with greater speed and trust to support life in countries without a strong banking ecosystem. Particular attention is paid to supporting the work of civil society organisations, such as through our Tadamon network of 4,000 civil society organizations,” said Robert Pasicko, Innovation Team Leader at UNDP.
Currently serving board members include:
- Sandra Uwantege Hart, Head of Humanitarian Venture Lab at Mercy Corps Ventures
- Mercina Tillemann Perez, Vice President, Circle Impact at Circle
- Paula Gil Baizan, PoliSync Center for International Political Engagement
- Ahmed Zifzaf, Head of Crypto/Web3 Partnerships at Worldpay
- Hasan Fallaha, Livelihoods and Economic Recovery program analyst at UNDP Syria
- Ali Theyab Al-Zuhairi, Economic Reform Project Coordinator (FFER-FED) at UNDP Country Office in Iraq
- Robert Pasicko, Innovation Team Leader, United Nations Development Program (UNDP)
- Henri de Jong, Director of Business Development at Quantoz
- Rory Crew, Technical Consultant on Data and Digitization at CALP Network
- Nigel Pont, senior consultant at HesabPay
- Suzana Moreno, Head of Strategy and Project Portfolio for Blockchain Technology at WFP Innovation Accelerator
- Kelly Stablein, independent humanitarian consultant
About the Algorand Foundation
Algorand’s mission is to power a world where information is intact and innovative ideas can grow. The Algorand Foundation supports the rapidly growing Algorand ecosystem by providing a world-class development environment, supporting key infrastructure and defining technical standards, offering comprehensive support to builders and entrepreneurs, and providing the infrastructure for decentralized governance.
Founded by Turing Award-winning cryptographer Silvio Micali in 2019, Algorand has grown into a vibrant ecosystem of developers, entrepreneurs, and corporate partners who benefit from institutional-grade certainty and resilience, while features like low fees, instant finality, and a minimal of carbon emissions The footprint also appeals to the protocol’s millions of retail users. Builders of all types can use common programming languages like Python to develop advanced apps and protocols that solve important problems on a global scale: instant payments in war zones and disasters, self-sovereign identity for the disenfranchised, chain tracing supply for global trade, permissionless protocols addressing financial inclusion, and the creation of entirely new markets through tokenization, to name a few. To learn more and begin your Algorand journey, visit foundation.algorand.
About Circle
Circle is a global financial technology company that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications around the world. Circle is the issuer of USDC and EURC: highly liquid, interoperable and reliable monetary protocols on the Internet. Circle’s open, programmable platform and APIs enable organizations to easily manage their business at Internet scale, whether making international payments, building globally accessible Web3 apps, or managing their internal treasury. Find out more about Italian: https://circle.com.
About HesabPay
HesabPay is a global payments app at the forefront of global financial inclusion, targeting the 2 billion unbanked individuals around the world. With exponential growth, HesabPay now boasts over half a million users, facilitating $35 million in monthly peer-to-peer (P2P) transfers. The platform serves 250,000 families in managing bill payments and supports over two dozen donors in distributing humanitarian cash assistance. HesabPay’s impact is evident in its expansive reach and the vital financial lifeline it provides. Discover the full range of HesabPay services on hesab.com.
About Mercy Corps Ventures
Mercy Corps Ventures invests in and catalyzes venture-led solutions to increase the resilience of underserved individuals and communities. Founded in 2015 as the impact investing arm of global development agency Mercy Corps, we have supported 50 early-stage ventures to scale and raise more than $465 million in follow-on capital. 44% of our portfolio has at least one female co-founder and is focused on climate adaptation and resilience-building solutions in adaptive agriculture and food systems, inclusive fintech and climate-smart technologies, so that those living in Frontier markets can weather disruptions and plan for the future. Through capital and support, pioneering new approaches, action-oriented insights and rigorously managing impact, we catalyze the ecosystem towards smarter, more impactful investments. Find out more about www.mercycorpsventures.vc.
About Worldpay
Worldpay is a leading payment technology and solutions company with unique capabilities to power omni-commerce around the world. Our processing solutions enable businesses of all sizes to accept, make and manage payments in person and online from anywhere in the world. Every year we process over 40 billion transactions across 146 countries and 135 currencies. We help our customers become more efficient, safer and more successful.
SOURCE Algorand Foundation