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Red Cross Adopts Blockchain Credit System to Aid Project

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Red Cross has recently turned its attention to blockchain as a potential new way to distribute its services. Three national units of the Red Cross are backing a blockchain-based currency scheme to enhance aid delivery and boost local economies. The project aims to improve the use of $1 billion a year in aid distributed as cash and vouchers by the Red Cross to meet needs before and after disasters.

The three countries involved; Kenya, Norway, and Denmark, have launched a two-year plan to replace cash and voucher provision in aid and development efforts with blockchain-backed “local currencies.”

It was said that the system has already been tested in certain regions within Ethiopia and Kenya, the system has already proven effective, making it easier for citizens to improve trade through earning crypto for work, running their own business, and receiving aid.

The system is targeted to expanded across Kenya and in the future could be rolled out in Malawi, Myanmar, Zimbabwe, Cameroon and Papua New Guinea, with the scope set to onboard 320,000 users within two years.

The system works much like Kenya’s popular M-Pesa mobile money transfer system, but users do not need to hold Kenyan shillings, said Adam Bornstein, who works on alternative financing for the Danish Red Cross.

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