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Red Cross to Help Disaster-Riddled Communities in Kenya via Blockchain

A notable challenge when supporting disaster-stricken communities entails overseeing the entire process and ensuring that everything transgresses as planned.

The Red Cross is eyeing blockchain-backed “local currencies” to help revitalize poor communities and establish a thriving economy on the foundation of smooth trades. As a result, the Red Cross societies of Kenya, Norway, Denmark, will be partnering to steer this initiative.

Kenya’s rejuvenation plans

In Kenya’s slum and poor communities, members have a lot of things to sell, such as home-grown tomatoes. Nevertheless, few of them have sufficient disposable incomes to enable them to buy these goods, and this reduces the urge to produce more.

In some cases, barter trade is involved, for instance, exchanging farm produce for labor rendered. However, keeping track of debts is an inefficient process. This trend is also noted in village savings and loan groups, whereby transactions are mostly recorded on paper slips.

The Red Cross seeks to eradicate this challenge by offering a credit loop supported by blockchain-powered currencies. This will be instrumental in ensuring that these communities do not handle over cash in a straight forward way as they will be made to be self-reliant. As a result, they will be in a position to tackle natural disasters, such as drought, that usually recur in Kenya.

This objective will be attained by using a phone app comprising of simple features needed to transfer credits. All transfers will be stored on a blockchain. Slum-dwellers or villagers will, therefore, be in a position to be renumerated for their labor and consequently spend the credits earned on local services and goods. The system has already been tested in parts of Ethiopia and Kenya, and it has been pivotal in enhancing economies in poor communities.

Adam Bornstein, a member of the Danish Red Cross, stipulated that this system functions similarly as the popular M-Pesa mobile transfer network in Kenya, though the users will not be required to hold Kenyan shillings, the national currency.

The blockchain project seeks to efficiently utilize the aid fund availed by the Red Cross to the tune of $1 billion annually.

Image via Shutterstock

The Birth of the Coronavirus-Backed CoronaCoin Amid Quarantining Banknotes in China

The novel coronavirus, also known as COVID-19 has spread to at least 25 other countries and caused 5 deaths outside of mainland China. Restrictions in Hubei, of the epicenter province of the outbreak, have been imposed further on its citizens. In Wuhan, the city where the coronavirus originated, has been banning its citizens from leaving their homes.

The World Health Organization announced that the future path of the epidemic is “impossible to predict.”

China has also started disinfecting and isolating used banknotes, aiming to stop the spread of the coronavirus. By using ultraviolet light and high temperatures to disinfect bills, banknotes are sealed and stored for around 14 days before recirculating them to the public. The nation’s central bank made an emergency issuance of the four-billion-yuan worth of new bills for the province of Hubei prior to the Lunar New Year holiday.

The birth of a CoronaCoin

Amid the climbing death toll in China due to the coronavirus, the cryptocurrency community has seen the emergence of a new coin–a coronavirus-backed token.

Published first on Reddit, the primary purpose of the token is to spread awareness of the health issue across the board. The CoronaCoin (NCOV), will be an ERC-20 token, and the total supply of the token is based on the world population. With one NCOV token per each person alive globally (7,604,953,650), the token is burnt every 48 hours, according to the number of infections and casualties from the virus.

Controversy over the CoronaCoin

The cryptocurrency community on Reddit also commented on the creation of the token. The community has skewed toward the end of the skeptical spectrum regarding the features of the coin, as the post indicates that investors would be able to benefit from the spread of the virus. A user on Reddit called the token a “shitcoin,” and deducted that “it must be a bull market” as this token made an appearance. Another user had the opinion that the token would “do the opposite” of incentivizing people to spread the disease for the token to gain value.

The token’s website states that a portion of the funds will be donated to Red Cross for “nCov relief,” however, it does not state the precise portion. The crypto community also suggested that Bitcoin would remove the need to quarantine cash.

Red Cross: The issues with donations and how blockchain can help

There has been concern that the millions of dollars being donated for the public, as well as the protective equipment, are not being put to use where needed, and it has been reported that the equipment has been misdirected.

Beijing has ordered all public donations for the coronavirus outbreak to be funneled to five government-backed charity organizations, which automatically assumes that these government-backed charities are all fit for purpose, and would be able to manage in a centralized manner of the recent outbreak.

Blockchain.News previously reported that the Red Cross in China has previously mishandled billions of dollars donated for the Wenchuan earthquake in Sichuan province in Western China in 2008. The Red Cross in China reflected, “One of the lessons learned was that emergency response must be better developed at the local level.”

According to Syren Johnstone, the Executive Director of the Master of Law (Compliance and Regulation) Program at the University of Hong Kong, a private blockchain network would “enable the recording and tracking of anything that is donated, from donation dollars to N95 masks.” By holding the person or organization accountable, donations for delivery could be tracked from the donor all the way to its final-use. Blockchain would also enable transparency for the general public to understand how their donations have been used and its progress. While a private blockchain is strictly controlled, it can also allow for public transparency for donors and donees, as well as authorities.

Singapore Red Cross Partners with Triple-A to Accept Cryptocurrency Donations

Singapore Red Cross, a prominent humanitarian organization, has announced a partnership with Triple-A, the first crypto payment gateway licensed by the Monetary Authority of Singapore (MAS), to accept cryptocurrency donations. The partnership was revealed on August 7, 2023, just ahead of Singapore’s National Day.

Triple-A, a licensed crypto payment gateway, enables businesses to increase revenue by accepting crypto payments and payouts. Their white-label solutions allow businesses to leverage the benefits of the growing crypto market without exposure to volatility risk or the need to handle or convert digital currencies. Trusted by over 20,000 businesses, Triple-A also holds licenses from Banque de France’s ACPR in Europe and is registered with the United States Financial Crimes Enforcement Network (FinCEN).

With the integration of Triple-A’s white-label crypto payment solutions, the Singapore Red Cross can now accept donations in various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC). All crypto donations will be converted into fiat currency and settled via bank transfer within one business day, ensuring prompt access to funds for humanitarian initiatives.

The Secretary General and CEO of Singapore Red Cross, Mr. Benjamin William, expressed his enthusiasm for the partnership, stating, “Cryptocurrency donations have become increasingly popular due to the efficiency of processing them and their global accessibility. By accepting digital currencies, we open our doors to a new segment of donors who are tech-savvy and wish to make a difference through their digital assets.”

Mr. Eric Barbier, CEO of Triple-A, also commented on the collaboration, saying, “We’re honoured to partner with the Singapore Red Cross in enabling cryptocurrency donations and empowering donors to support humanitarian causes with digital assets. Crypto payments offer faster, more secure transactions, reduce administrative overheads, and ensure that the funds reach those in need promptly.”

The new payment option is now live on the Singapore Red Cross website, allowing donors from around the world to contribute using their preferred cryptocurrencies. The partnership aims to uplift the vulnerable in Singapore and open up more opportunities for a new generation of tech-savvy donors.