Cryptocurrency

Published on July 20th, 2020 | by Sunit Nandi

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How Switching to Crypto for Aid Relief and Benefits Can Save Governments Billions

In order to provide disaster relief fund government is taking many steps to reach o the exact people who are in need. The government provides relief fund to aid disaster management. Every year, there are billions of dollars are spent to create an infrastructure through which funds can be transferred to those who are in need. Because identifying who were affected by the disaster and building a financial structure and a team to aid relief requires a lot of money.

For providing relief funds along with blankets, hygiene kits to the vulnerable people in a disaster, government, and humanitarian organizations are spending billions of dollars every year. However, many vulnerable people do not get the benefits appropriately because of an improper distribution structure.

However, the transparent nature of blockchain can change how relief funds are distributed among the affected people. Bitcoin is already used for providing relief to the Syrian refugees and in other relief supports. This can save billions of dollars of the government, however, there are many concerns that are raised in this matter. I am going to share how those concerns can be resolved and how crypto can play an important role to aid relief to the affected populations.

Concerns of Crypto to Aid Relief

Before I share how switching to crypto for aid relief and benefits can help the government, I will share what are the concerns. And how those concerns can be resolved and what are the proposals given by different crypto communities regarding this matter.

Here are some major concerns about providing relief funds through the blockchain network.

  • How relief can be distributed through cryptocurrencies?
  • How the recipients can use the relief, how will they spend the relief funds?

To resolve this problem one of the blockchain startups has issued crypto IDs to the recipients. However, there is no guarantee that the next natural disaster or any mishappening will strike that same place. So another problem arose that

  • It’s not possible to find the exact location where the disaster is going to happen next time.

Addressing such problems, Telecoin had come up with an innovative solution that can provide relief through mobile money. This is one of the most suitable and reliable ways to aid relief to the person who is in need. But the basic requirement for receiving the fund is to have a mobile phone. Even if it is not a smartphone, they can get relief. Today almost everyone has a mobile phone even in the poorest areas of the world.

To prevent fraud, they have developed a fraud-prevention software that can detect the mobile which is active before a month in the affected area. This software ensures that the relief is distributed to the right people.

Benefits of Crypto to Aid Relief

Cryptocurrency and the underlying technology blockchain have many benefits in providing relief to the affected people. According to the upgraded software, a small percentage of people are using cryptocurrencies for financial transactions and investing in it.

However, blockchain technology can do many more things apart from financial transactions. Recently, Red cross is taking a bold step to implement cryptocurrency to aid relief to the disaster-prone areas and community living in those areas.

Many other humanitarian organizations, blockchain startups, NGOs, and the government are planning to adopt cryptocurrency for providing relief to the vulnerable population. Here are the following reasons for which cryptocurrency is suitable for providing relief funds.

  • Cryptocurrency can provide financial services to the unbanked and underbanked group at an affordable and cheap price.
  • Anyone with a mobile phone can have access to financial services with the help of cryptocurrencies.
  • Cryptocurrencies allow faster and transparent transactions.
  • As it does not involve any third party so the corruption rate is very low and the money can be transferred to the person in need.

Conclusion

Cryptocurrency is not only used for investment and trading; it has many other applications. It can bring financial inclusion to the unbanked group and provide equal financial service to everyone. All of the above benefits show that cryptocurrencies can help the government to save billions to aid disaster management. Now please share your opinion on this post.

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About the Author

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I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.



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