Using crypto and blockchain to provide Unconditional Basic Income to refugee populations
According to the UNHCR, as of 2019 there were 79.5 million people who were forcibly displaced worldwide, which includes 26 million refugees. 85% of these individuals are hosted in developing countries and will often end up in refugee camps with poor infrastructure and a lack of access to services.
As climate change intensifies, and new geopolitical conflicts emerge, one can only assume the worst - that the number of individuals who are forcibly displaced from their homes will continue to rise globally. As such, there is an urgent need for international NGOs, governments, and social entrepreneurs to come together and develop accessible technological innovations to support refugee populations.
In past blog posts, I have highlighted some innovative applications of blockchain and cryptocurrency that are having a meaningful impact on refugee populations. These include the WFP’s Building Blocks program, which provides direct aid to refugees; Leaf Global FinTech, which provides virtual banking services for refugees and vulnerable populations; and Kotani Pay, which improves access to financial instruments for vulnerable populations.
As the world works with urgency to adapt to the growing refugee crisis, cryptocurrency and blockchain can, and should, play an essential role in developing innovative technological solutions to meet the complex needs of refugee populations. Whether it’s the provision of direct aid, the development of a decentralized identification system, or support with accessing decentralized financial services, blockchain and crypto have the potential to positively disrupt the ways in which support is provided to refugee populations. One use case that has a lot of potential for supporting refugee populations, is a blockchain-based Unconditional Basic Income program.
Unconditional Basic Income for Refugee Populations
Unconditional Basic Income, or UBI for short, has gained a lot of steam around the world lately, as many countries have pondered the idea of implementing UBI as a way to replace outdated social welfare programs with one that provides greater agency to beneficiaries. COVID-19 has only increased the momentum as governments urgently attempted to put in place adequate supports for those adversely impacted by COVID-19.
One project, operated by the Refugee Integration Organisation (RIO), is using the innovations of blockchain and cryptocurrency to provide UBI to individuals residing in three refugee camps. This project makes use of the Celo cryptocurrency to provide $1.50 of daily UBI to refugees, which is delivered in local currencies with no need for repayment. The project is housed on ImpactMarket, a “decentralized anti-poverty system”, and makes use of USSD technology to ensure it is accessible to the most vulnerable refugees, regardless of if they have access to a smartphone or the internet.
Through this project, over $71,000 USD has already been distributed to over 2,500 refugees, as of August 2021. Recipients are able to make use of the funds to purchase life essentials, helping transition refugee camps to self-sustaining communities.
One of the most exciting innovations of this project is how it is incorporating values of decentralization by putting decision making power in the hands of the refugees themselves. Whereas most aid programs for refugees are overseen by a centralized body that determines eligibility and how the aid will be dispersed, this project does the exact opposite:
Although it is still relatively small in scale, this project has the potential to grow to impact millions, and can act as a pilot for other organizations looking to implement UBI programs for vulnerable populations. Not only is it helping ensure aid gets in the hands of those most in need, but it also empowers refugee communities to make decisions that are in the best interests of their communities, without the need for a centralized intermediary.
What role do you see blockchain and crypto playing in the implementation of UBI programs? Tweet us at @Crypto_Altruism, we’d love to hear from you.
