Oxfam, Sempo and ConsenSys Work Together To Use Dai’s Stablecoin To Help Regions Affected By Natural Disasters
- Oxfam works with Sempo and ConsenSys to use the Dai cryptocurrency as aid
- The goal is to help countries affected by natural disasters
- The recognized international charity organization Oxfam has signed a new partnership with two crypto and bloc
- kchain firms, Sempo and ConsenSys. The goal is to test the stablecoin Dai (DAI) in order to help regions affected by natural disasters. The information was released by the local news site Micky on June 17.
Oxfam Signs Partnership With Crypto Companies
The report shows that these parties have launched a new philanthropic initiative that is called UnBlocked Cash, which is also backed by the Australian government. The goal is to test the system on Vanuatu, one of the world’s most affected countries by natural disasters.
The trial includes 200 residents from the Efate island hat received tap and pay cards with $50 each. These cards are also connected to the Ethereum (ETH) network through an address with $50 worth of Dai. At the same time, local vendors have smartphones that run specific software allowing them to receive the payments.
The co-founder of the initiative, Nick Williams, claims that this is the first time that an NGO is using a stablecoin to help individuals around the world, specifically to provide aid anywhere. Moreover, this is not a one-off pilot, since stablecoins can change the way in which aid is delivered.
According to the report, Sandra Hart, the Unblocked Project lead at Oxfam in Vanuatu, commented:
“For the first time ever, thanks to the use of a stablecoin, we now have end-to-end transparency, ensuring that the people who receive funds are the ones that need it. It’s a game changer for Oxfam that ultimately makes our work easier and more effective.”
At the same time, Oxfam launched its supply chain called BlocRice blockchain that would be using smart contracts and provide transparency and security in rice growers in Cambodia. The platform has been under development and should be expanded to 5,000 farms by 2022.
Dai is a stablecoin that is pegged to the US dollar and that it works by providing loans to users that give Ethereum as collateral. By modifying the ability fees that the network has, it is possible to increase or decrease the supply and stabilize the price of the asset when it moves away from its 1:1 peg.
According to CoinMarketCap, Dai is the 87th largest digital currency in the market with a market capitalization of $86 million.