Three national units of the second-largest humanitarian donor after the United Nations, Red Cross,  are backing a blockchain-based currency scheme to facilitate aid delivery and boost the local economies.

Moreover, as per a  <a href="http://news.trust.org/item/20191126123058-xtxvz/" target="_blank" rel="noopener">report</a> by the Thomas Reuters Foundation on November 26, the Red Cross societies of Norway, Denmark and Kenya have initiated a two-year plan to replace fiat and voucher in aid and development activities with blockchain-backed "local currencies."
<h2>Red Cross Distributes $1 Billion Annually</h2>
According to the report, Red Cross distributes $1billion every year through cash and vouchers. The money is either for specific targets hit by a disaster or for the purpose of boosting local economies.

In addition, the launched blockchain scheme, which has already undergone the piloting phase  in parts of Kenya and Ethiopia, has been confirmed to improve trade in poor societies; by enabling local users to earn credits from work, sales or aid infusions; and use them via a smartphone app, with an underlying blockchain ledger recording the transactions.
<h2>Blockchain System Similar to Kenya’s Mpesa</h2>
In addition, a Danish Red Cross representative told Reuters that the <a href="https://www.cryptoknowmics.com/crypto/crypto-sentiment-report-confirms-negativity-against-bitcoin-not-blockchain/" target="_blank" rel="noopener">Blockchain</a> solution; has similarities with Kenya's successful mobile money transfer system,  Mpesa. However, the system does not need users to hold national fiat currency to take part.

Furthermore, the new system will be distributed across Kenya; and in the near future it could be expanded to Malawi, Myanmar, Zimbabwe, Cameroon and Papua New Guinea. Within two years, the system has targeted 320,000 users. Notably, a Geneva-based humanitarian consultant Paula Gil, has noted that she believes blockchain technology will revolutionize the delivery of aid and represents the future of the sector.

In conclusion, Will Ruddick, Grassroots Economics founder stressed on the low costs needed to operate the scheme. About $40,000 is needed every year for servers and support in Kenya; alongside the initial $1 million in start-up funding from Norway and the other participants.

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Red Cross Deploys Blockchain to Boost Disaster Prone Communities

Three national units of the second largest humanitarian donor after the United Nations, Red Cross,  are backing a blockchain-based currency scheme to... %

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Red Cross Deploys Blockchain to Boost Disaster Prone Communities

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