The blockchain and cryptocurrency industry can be used to help people living in isolated communities. Unfortunately, there a lot of places in the world where financial institutions are unable to serve people due to various reasons.
The blockchain technology can eliminate the need for middle-men and intermediaries. International Red Cross and Red Crescent Movement decided to use this emerging technology to help the people who live in disaster-prone areas. This way, the Red Cross can ensure that people will have access to banking and money management by simply using their mobile phones.
This week, the Red Cross societies of Norway, Denmark, and Kenya launched a two-year effort. This program is based on blockchain technology. The purpose of this program to solve the problems associated with hard cash in Kenya and Ethiopia.
Blockchain and new projects
The Red Cross societies developed blockchain-backed “local currencies” to fill the gap caused by the lack of financial institutions. The introduction of a blockchain-based currency will tackle several issues. Firstly, this decision will have a positive impact when it comes to financial freedom. Secondly, smartphones are more common in those areas than in the banking industry.
Moreover, cryptocurrency will make it easier to use the money to deal with disasters in the region.
The new currencies will use credits transferred by mobile phone, and it will be automatically recorded with blockchain.
However, it won’t be hard to use the blockchain-based currency as people in Kenya are already using M-Pesa money transfer system. The major difference between the M-Pesa and new currency is that users do need to hold Kenyan shillings.
Paula Gil, who is a Geneva-based humanitarian consultant who made a comment regarding this initiative. She said that it is important to use the Blockchain technology for good.
Last but not least, there are numerous startups in the world, hoping to change the world for the better thanks to blockchain technology.
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