Disbursing humanitarian aid to women via blockchain
Sector: Tertiary sector · Industry: Care and social services · Organisation: CARE International (CARE) · Maturity level: Pilot
CARE International (CARE) launched pilot programs in Ecuador and Kenya to deliver direct aid to women and women's groups using blockchain and cryptocurrency infrastructure. The initiative aims to make humanitarian transfers more transparent, efficient, and traceable. Furthermore, it explores pathways for expanding digital financial inclusion among underserved communities.
Documentation status
- Project status: Pilot — CARE International launched pilot programmes in Ecuador and Kenya to test digital cash aid payments.
- Evidence: Evidence medium
- Editorial review: pending
Description
The aid organisation CARE International (CARE) is testing the use of blockchain and cryptocurrency technologies for direct aid payments in Ecuador and Kenya. The approach allows funds to be paid directly to eligible women and groups on site without lengthy intermediaries. In this way, donors and humanitarian organisations gain maximum transparency over fund flows while administrative costs are reduced.
In the humanitarian sector, aid organisations often face the challenge of quickly, safely, and transparently providing financial resources to needy target groups in remote areas. CARE International (CARE) therefore initiated pilot projects in Ecuador and Kenya to test payments using blockchain and cryptocurrencies under real conditions. The project specifically targets women and women’s groups to promote their financial self-determination. Through decentralized ledger technology, transactions can be tamper-proof and fully traceable, simplifying accountability to donors. At the same time, the pilot aims to demonstrate how barriers to financial services for people without traditional bank accounts can be overcome.
Perspectives
B2B — organisations perspective
For humanitarian organisations and donors, the use of blockchain creates a verifiable trace of fund usage. Administrative efforts in international billing can thus be significantly reduced.
B2C — consumers perspective
Beneficiary women gain direct control over financial aid via digital interfaces. This provides them with low-threshold access to economic resources and strengthens their independence.
Employees perspective
Project staff on site are relieved from manual cash distribution and can focus more on advising and training recipients. The digital process also increases the personal safety of personnel during aid missions.
Benefits
General
- Increased traceability and transparency of aid payments
- Reduction of friction losses and fees in payment transactions
- Improved financial inclusion of women in developing markets
B2B — organisations
- Audit-proof fund tracking for institutional donors
- More efficient billing processes without traditional correspondent banks
B2C — consumers
- Direct and self-determined access to aid funds
- Learning digital skills in handling financial instruments
Employees
- Relief from risky cash payments
- Focus on project support instead of payment logistics
Challenges
General
- Uneven mobile phone and internet coverage in rural areas
- Need for intensive user training for digital applications
B2B — organisations
- Regulatory uncertainties regarding cryptocurrencies in various target countries
B2C — consumers
- Possible hurdles in local conversion of digital values into goods
Employees
- Increased initial training effort when introducing new systems
Technology foundation
Distributed ledger technology and cryptocurrency infrastructure enable direct peer-to-peer payments of funds without traditional banking intermediaries. Transactions are audit-proof and traceably documented in the network, reducing administrative costs of humanitarian payment flows.
Implementation examples
CARE Blockchain/Cryptocurrency Pilot (Ecuador, Kenya)
Traditional aid payments are often associated with bureaucratic hurdles, high bank fees, and logistical risks, especially for recipients without a formal bank account.
CARE conducted pilot projects in Ecuador and Kenya to distribute aid funds directly to women and women's groups via blockchain and cryptocurrencies.
As part of the pilot projects in Ecuador and Kenya, CARE International (CARE) explored how cryptocurrencies and blockchain technologies can be used as tools for humanitarian aid. The aim was to significantly improve transparency and traceability in fund distribution. The initiative specifically targeted women and existing women's groups to practically test their economic independence and financial inclusion.
Avoidance of delays and losses in transfer payments as well as reduction of barriers to access digital money for disadvantaged population groups.
Tags
Aid funds, Cryptocurrency, Financial inclusion, Non-profit, Transparency