International development charities should take the time to understand the importance of cryptocurrency and blockchain in helping developing countries, technology and aid organisations have told an event.
Speakers from UK-registered charitable grantmaker GSR Foundation, US-based aid organisation Mercy Corps and financial technology company LMAX, said that aid charities and tech companies often struggle to communicate with one another about the benefits of emerging tech.
The event held in the Houses of Parliament yesterday discussed how blockchain can be a more secure digital ledger of transactions in comparison to a traditional database.
Aidan Alberico, senior corporate sustainability partner at LMAX, said: “How do you get money into the hands of people that need it instantaneously?
“That can be done through blockchain. It is transparent, it’s accountable and it is immutable.”
Ken Kow, fintech and innovation lead at Mercy Corps, added: “You have this beautiful new technology which allows you to move money from point A to point B cross border super-fast with minimal fees.
“Money gets out there 90% faster than normal and there’s a 75% reduction in transaction costs.
“There’s a huge appetite for local startups, local engineers and aid charities to use this technology. It’s about having the opportunity to make this a reality and make this grow.”
Communication issues
Lord Wharton, former international development minister, chaired the meeting and asked how cryptocurrency and blockchain had changed the aid sector and what its impact had been.
Alberico said: “Crypto might not be the number one solution for the aid sector but in terms of its impact it helps fill gaps right now.”
Kow added: “I think the challenge here is that the tech sector and the aid sector do not know how to communicate with one another.
“The question we have to ask is how do we combine the two and how do we get to a point where aid charities employ tech talent and promote their own innovation.”
The panel also discussed the recent UK government cuts to aid as well as the USAID cuts which have impacted aid charities.
To overcome this, James Newell, executive director of GSR Foundation, said: “Take the time to understand the technology.
“Alongside aid cuts, charities have a lack of resources to often use this technology and we at the GSR Foundation are here to change that and help.”
