Global fintechs and web3 giants join forces 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 Programme and others.

BARCELONA, Spain, June 26, 2024 /PRNewswire/ — Today, in a move led by the 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 begun to offer more cash assistance (versus in-kind assistance or services). According to CALP NetworkA leader in cash and voucher-based humanitarian assistance, this form of assistance now comprises 21% of all international humanitarian aid, reaching $10 billion in 2022, and this share could potentially be much higher (source). Humanitarian organizations are working to deliver this type of aid as quickly and cost-effectively as possible, while navigating increasingly complex financial regulations. With this in mind, 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 primarily 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 delivery of cash aid, making it possible to respond on an even larger scale.

Scaling up cash aid also requires transparency. Cash aid programs must be traceable and verifiable without violating the rights of recipients. Using blockchain, organizations can maintain an immutable, unchangeable record of how money has been distributed, without revealing how it is being used by the recipient. This model protects the privacy of those in crisis while maintaining the traceability and verification that aid programs, donors, and governments need.

Powered by Algorand, global payment app HesabPay is already demonstrating the power of merging blockchain and aid delivery. It is facilitating the world’s largest humanitarian project ever run on a public blockchain, supporting more than 14,000 families in Afghanistan in partnership with the United Nations World Food Programme (WFP) and supported by the WFP Innovation Accelerator.

Bernhard Kowatsch, head of the WFP Innovation Accelerator, added: “The success of HesabPay 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 that cash offers to recipients. To be effective, humanitarian payments must meet several requirements: immediate settlement, easily scalable to thousands if not millions of recipients, and transparent and traceable,” said Matt Keller, director of impact at the Algorand Foundation. “Blockchain meets all these needs and is one of the reasons we invested in HesabPay, which provides humanitarian aid payments in Afghanistan without sacrificing time or liability.”

“At Circle Impact, our mission since 2021 has been 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 inclusion financial aid to scale up humanitarian aid and disaster relief,” said Mercina Tillemann-Perez, Vice President of Circle Impact.

“Launching 16 cryptocurrency pilots in over 10 countries over the past 4 years, Mercy Corps Ventures has actively implemented one-of-a-kind real-world use cases in the humanitarian and development context leveraging blockchain technology. We are now building a Humanitarian Venture Lab with a pipeline of humanitarian pilots, use cases and insights that show where the challenges Algorand Foundation is addressing are manifesting 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 unparalleled traceability. If this initiative can match the speed and efficiency of the 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, making payments with greater speed and trust to support lives in countries without a strong banking ecosystem. Particular attention is being paid to supporting the work of civil society organisations, such as through our Tadamon network of 4000 CSOs,” said Robert Pasicko, Innovation Team Leader at UNDP.

The current members of the board are:

• 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 Programme 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 ai, United Nations Development Programme (UNDP)
• Henri de Jong, Director of Business Development at Quantoz
• Rory Crew, technical advisor on data and digitalisation at the 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 Advisor

About the Algorand Foundation
Algorand’s mission is to power a world where information has integrity and innovative ideas can scale. The Algorand Foundation supports the rapidly growing Algorand ecosystem by providing a best-in-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 algorand foundation.

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 trusted currency protocols on the Internet. Circle’s open, programmable platform and APIs make it easy for organizations to run their businesses at Internet scale, whether they’re making international payments, building globally accessible Web3 apps, or managing their internal treasury. Learn more about Italian: https://circle.com.

About HesabPay
HesabPay is a global payment app pioneering global financial inclusion, serving the 2 billion unbanked people around the world. With exponential growth, HesabPay now boasts over half a million users, facilitating $35 million in peer-to-peer (P2P) transfers monthly. The platform serves 250,000 households in managing utility 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 at 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 over $465 million in follow-on capital. 44% of our portfolio has at least one female co-founder and focuses on climate adaptation and resilience-building solutions in adaptive agriculture and food systems, inclusive fintech, and climate-smart technologies so those living in frontier markets can withstand disruption and plan for the future. Through capital and support, pioneering new approaches, action-oriented insights, and rigorously managing impact, we catalyze the ecosystem toward smarter, more impactful investing. Learn more about www.mercycorpsventures.vc.

About Worldpay
Worldpay is a leading payment technology and solutions company with unique capabilities to power omni-commerce worldwide. Our processing solutions enable businesses of all sizes to accept, make and manage payments in person and online from anywhere in the world. We process over 40 billion transactions each year across 146 countries and 135 currencies. We help our customers become more efficient, more secure and more successful.

SOURCE Algorand Foundation

Fuente