Ripple USD (RLUSD), Ripple's stablecoin, is being used to provide humanitarian aid to drought-affected pastoralist communities in Kenya, in collaboration with Mercy Corps Ventures and DIVA Donate.
Humanitarian aid is finding new ways to reach those most in need through cryptocurrencies and blockchain technology. Ripple, in collaboration with Mercy Corps Ventures and DIVA Donate, is implementing a pilot program in Kenya to assist pastoral communities affected by drought.
The initiative uses Ripple USD (RLUSD), a stablecoin backed by XRP Ledger and Ethereum, for the efficient and transparent delivery of funds.
The use of this stablecoin, which also guarantees compliance, underscores how blockchain technology and digital assets can be powerful tools in addressing humanitarian challenges, offering innovative solutions for aid distribution and financial inclusion.
Kenya's pastoralist communities, who depend on livestock for their livelihoods and maintain a nomadic lifestyle in search of pastures, are increasingly affected by severe droughts. These extreme weather conditions decimate their herds, negatively impacting their income and contributing to the humanitarian crisis. Ripple's initiative therefore seeks to mitigate these effects by providing financial support before the situation worsens, allowing families to purchase feed and water for their animals, thus ensuring their survival and economic stability.
RLUSD: Stability and transparency for humanitarian aid in Kenya
The choice of RLUSD as a means of payment in this humanitarian assistance program is due to the fact that stablecoins, cryptocurrencies designed to maintain a stable value by being linked to assets such as the US dollar, offer an alternative to the volatility characteristic of other cryptocurrencies such as Bitcoin or EthereumThis stability is crucial for humanitarian aid, where predictability of the value received is essential to ensure that beneficiaries can cover their basic needs without risking losses due to market fluctuations.
But, in addition to its stability, RLUSD is also distinguished by its transparency and regulatory compliance. Backed 1:1 by US dollars held in reserve, offers a high degree of confidence for both donors and recipients of aid. This transparency, inherent in blockchain technology, allows transactions to be tracked and ensures that funds reach their destination efficiently, reducing the risk of corruption or misappropriation of resources. In this sense, the blockchain provides an immutable record of all stablecoin transactions, facilitating auditing and accountability.
GO TO BIT2ME LIFEIn terms of efficiency, RLUSD enables the almost instant delivery of funds, overcoming the limitations of traditional banking systems, which often involve long processing times and high fees. Furthermore, thanks to blockchain technology, RLUSD allows schedule distribution Of funds through smart contracts, automating the process and ensuring that help is delivered when and where it is needed, without manual intervention.
The pilot project in Kenya with RLUSD
The pilot program in Kenya is based on an innovative approach that combines real-time environmental data with blockchain technologyThe initiative uses the Normalized Difference Vegetation Index (NDVI), a satellite-based measurement that assesses vegetation health and density, to determine when drought conditions are met and aid distribution is triggered. This data-driven approach enables a proactive and accurate response, ensuring that resources are directed to the most affected areas and to the people who truly need them.
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Smart contracts play a crucial role in the automation and transparency of the pilot program. These contracts, which are automatically executed when certain predefined conditions are met, ensure that funds are released to pastoral communities once NDVI data confirms the presence of drought, eliminating the need for intermediaries and reducing the risk of human error or delays; they also expedite the delivery of humanitarian aid and maximize its impact.
BUY RIPPLE HEREAccording to reported Rippe, the pilot project aims to Support 533 pastors in Laikipia County, an arid and semi-arid region prone to recurring droughts.
“By providing financial support before drought conditions become severe, families can purchase livestock feed, secure water supplies, or meet other critical needs.”, the company reported.
Mercy Corps Ventures and DIVA Donate: Strategic allies in this mission
Collaboration with Mercy Corps Ventures and DIVA Donate is critical to the success of this program. Mercy Corps Ventures, as the impact investing arm of Mercy Corps, brings its expertise in the work with vulnerable communities and their knowledge of the specific challenges faced by pastoralists in KenyaTheir participation ensures that the project is designed and implemented effectively, taking into account local needs and context.
DIVA Donate, for its part, is a platform that uses decentralized finance (DeFi) to facilitate parametric conditional donationsIts platform allows donors to deposit funds into a pool and set specific conditions for their release, such as drought detection through targeted NDVI data. This platform acts as a bridge between the cryptocurrency world and humanitarian organizations, providing a transparent and efficient infrastructure for the distribution of humanitarian aid.
BUY XRPThe synergy between Ripple, Mercy Corps Ventures, and DIVA Donate creates a powerful ecosystem for the delivery of this aid and exemplifies how different actors can come together to address global challenges using innovative and collaborative solutions.
Blockchain and stablecoins serving humanity
Ripple's pilot program in Kenya represents an important step toward the adoption of blockchain and stablecoins in humanitarian aid. While this project focuses on assisting drought-affected pastoral communities, the technology's potential extends to a wide range of applications, from food and medicine distribution to refugee assistance and natural disaster response.
As blockchain technology continues to evolve and stablecoins gain greater acceptance and regulation, we're likely to see an increase in their use in the humanitarian sector. The transparency, efficiency, and stability these technologies offer make them valuable tools to address the challenges of aid distribution and financial inclusion, contributing to a more just and equitable world. Ripple's initiative in Kenya is therefore an inspiring example of how technological innovation can be used to improve people's lives and build a more sustainable future for all.
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