Red Cross has recently turned its attention to blockchain as a potential new way to distribute its services, announcing that three national units of the organization have officially developed a two-year plan that will use blockchain and local cryptocurrencies in place of their traditional cash and vouchers intended to provide aid and support economies.
Red Cross has recently turned its attention to blockchain as a potential new way to distribute its services, announcing that three national units of the organization have officially developed a two-year plan that will use blockchain and local cryptocurrencies in place of their traditional cash and vouchers intended to provide aid and support economies.
While we are no strangers to the impact that crypto can have on underdeveloped countries, the implementation of blockchain into the systems of major entities like the Red Cross is a huge step forward in adoption and global finance
The three countries involved, Kenya, Norway, and Denmark, will use these blockchain systems to stimulate local economies and provide support for the project. Having already been tested in certain regions within Ethiopia and Kenya, the system has already proven effective, making it easier for citizens to improve trade through earning crypto for work, running their own business, and receiving aid. Through the use of a mobile phone, they can easily send and receive money rather than having to use cash or vouchers. Unlike other current blockchain programs designed to achieve the same goals, those who participate in the system will not be required to hold their national fiat currency in order to send or receive money.
As of the time of writing, the current plan is to spread this technology across areas of Kenya, with future locations of deployment being Cameroon, Malawi, Zimbabwe, Myanmar, and Papua New Guinea. Overall, they are looking to serve over 320,000 users within their two-year time frame.
Overall, proponents of the system believe that blockchain is the future of aid, allowing for those who are impoverished and lack access to banking services to grow their wealth and participate in an economy of their own. Of course, those who run banking services in areas where these systems are set to be deployed feel threatened by the project. However, the growth, transparency, and inclusion that blockchain-based systems provide will greatly improve local economies in comparison to short-term aid that is typically distributed.
While we are no strangers to the impact that crypto can have on underdeveloped countries, the implementation of blockchain into the systems of major entities like the Red Cross is a huge step forward in adoption and global finance. We look forward to seeing them continue to grow this project as it yields results in the designated countries.
