HomeBlockchainBlockchain Enhances Security, Speed, and Transparency of Cash-based Humanitarian Aid

Blockchain Enhances Security, Speed, and Transparency of Cash-based Humanitarian Aid

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Transforming Humanitarian Aid Delivery with Blockchain Technology: A Look at the Future of Cash-Based Assistance

The use of blockchain technology in delivering humanitarian aid is revolutionizing the way organizations provide assistance to those in need. With nearly 300 million people in 72 countries requiring humanitarian assistance in 2024, the need for fast, safe, and trusted ways to deliver aid has never been more critical.

A recent summit brought together organizations such as Circle, the United Nations Development Programme, and WorldPay to discuss innovative ways to get cash to people living in war-torn and financially distressed areas. Cash-based assistance has been on the rise, comprising 21% of all international humanitarian aid in 2022, totaling $10 billion.

While cash aid offers transformational benefits such as reducing forced labor, promoting peaceful coexistence, and boosting local economies, it also comes with challenges like security risks, corruption, and logistical hurdles. However, a randomized control trial conducted by the London School of Economics in 2023 showed promising results when digital cash transfers were made using blockchain technology.

The study found that digital payments led to improved nutritional outcomes, increased financial inclusion among unbanked women, and enhanced transparency for donors. The immutable and transparent nature of blockchain technology ensures that funds reach the intended beneficiaries, reducing the risk of corruption.

The use of blockchain technology in humanitarian aid not only benefits recipients but also opens up opportunities for marginalized populations to access financial services and participate in a more inclusive world. As technology continues to advance, the potential for Web3 to create a more equitable and inclusive society for all is becoming increasingly evident.

The participants at the Humanitarian Payments summit recognized the transformative power of emerging technologies in making aid delivery more efficient and impactful. With blockchain paving the way for a more transparent and secure system, the future of humanitarian assistance looks promising for those in need around the world.

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