As a seasoned analyst with extensive experience in both traditional finance and emerging technologies, I’ve witnessed firsthand how blockchain has revolutionized various sectors. However, the integration of blockchain into international aid distribution has been particularly enlightening.
Over the past few years, saying “blockchain fixes this” has become a common trope. However, in the case of international aid distribution being enhanced by the integration of blockchain, the phrase has proven to be true.
As an analyst, in the face of a crisis, swift action is crucial. Not only does Mercy Corps’ Chief Investment Officer, Scott Onder, advocate for immediate response, but he emphasizes the added benefits of employing data analytics and blockchain technology to act proactively, preventing disasters before they occur. From both humanitarian and economic standpoints, this strategic approach offers significant advantages.
In Episode 47 of the “The Agenda” podcast, Ray Salmond and Jonathan DeYoung explore how Mercy Corps, a worldwide humanitarian organization dedicated to reducing suffering, poverty, and injustice, has adopted Web3 and blockchain technologies to boost its philanthropic initiatives and aid deliveries.
Blockchain enhances “anticipatory action”
In recent times, the hurricanes hitting Florida demonstrated the intricacy involved in reaching crisis-stricken locations and delivering essential aid. Rapidly, news broadcasters focused on accounts of residents who endured lengthy waits for crucial supplies because of logistical issues and infrastructure damage.
In the discussion, Onder shared his observation that proactive measures, referred to as “anticipatory action,” tend to produce superior outcomes compared to conventional reactive responses during emergencies. Notably, Mercy Corps often collaborates with and supports fintech entities in nations experiencing different crises. As an example, Onder mentioned a situation where Mercy Corps teamed up with a weather forecasting service, a microfinance and micro-insurance provider, and Diva Donate to initiate a project. The objective was to set up an automated system: when remote sensing satellites detected that vegetation levels were reaching a critical level of drought due to insufficient rainfall, funds would be released autonomously – this was achieved by activating a smart contract.
“This ended up occurring earlier in the year here and providing a whole range of community members with access to aid before that drought became severe.”
In simpler terms, Onder clarified that by implementing the Anticipatory Action Pilot, Mercy Corps managed to reduce costs by approximately 70%. This essentially implies that more resources were made available for those receiving aid.
As an analyst, I can attest to one of numerous endeavors where Mercy Corps played a pivotal role in empowering diverse entities leveraging blockchain technology for streamlined aid dissemination and crisis management.
Onder said:
“Research shows that anticipatory action, or in other words, aid delivered before disaster strikes, is seven times more cost-effective than traditional humanitarian aid. And blockchain, in this case, supports a more effective humanitarian system that preemptively identifies crises and then reduces the negative impact of the shocks, basically allowing those lower-income populations to prepare for those shocks in crises, then adapt and then build resilience over the long term.”
The blockchain mass adoption barrier is already broken in emerging markets
Another commonly held belief in the crypto space is that complicated multi-step user interfaces and technical jargon are preventing blockchain mass adoption. While Onder agrees that this is a challenge in Western and developed countries, it is not the case in many of the places where Mercy Corps operates.
“A lot of the onboarding challenges that we face in the US or Europe, where we all, you know, perhaps take for granted that our banking system is not only functional but accessible by a majority of our populations, we don’t necessarily have the same pain points that a user in Africa that might live in a market that you can’t access a savings account easily. There may be a hyperinflationary or inflationary environment.”
As a crypto investor, I’ve noticed that in various markets, individuals have been utilizing mobile wallets for nearly 15 years now. Given the circumstances of numerous developing countries with emerging financial sectors and basic banking systems, where billions remain unbanked, it’s become clear that mobile money, stablecoins, and Web3 cryptocurrency wallets have become the standard and a vital lifeline for many.
“Mobile money has really been a lifeline to be able to transact, and people now have fluency in using mobile wallets.”
To get further insights from Onder’s discussion with The Agenda and learn about Mercy Corps’ objectives for 2025, tune into the complete episode on CryptoMoon’s Podcasts page, Apple Podcasts, or Spotify. Don’t forget to explore the diverse selection of other shows available on CryptoMoon as well!
This post serves as a source of general knowledge and isn’t meant to provide legal or financial guidance. The perspectives, ideas, and opinions shared in this article belong solely to the author and may not mirror or align with those held by CryptoMoon.
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2024-10-16 13:11