Giulio Coppi, a senior humanitarian officer, questions the purported benefits of blockchain technology in crisis response, noting no evidence that it offers tangible advantages over existing systems. Despite instances where blockchain has been successful, such as in cash aid distribution by the UNHCR, challenges remain regarding its implementation. Stablecoins facilitate quicker transfers but add complexity and cost to aid organizations, especially smaller NGOs already stretched by existing burdens. The push for blockchain seems linked to increased control over aid distribution, raising concerns about the prioritization of outcomes over practical realities in humanitarian contexts.
"There's no proven advantage that it's cheaper or better. The way it's been presented is this tech solutionist approach that has been proven over and over again to not have any substantial impact in reality."
"Particularly with regards to money transfers, stablecoins can be faster and easier than other methods of reaching communities impacted by a disaster. However, introducing new systems means you're setting up a new burden for the many organizations that USAID partners with."
"The relative cost of new systems is harder for small NGOs, which would often include the kind of local organizations that would be at the front line of response to disasters."
"Tying payment to outcomes and results rather than inputs would ensure taxpayer dollars are spent effectively, but it's essential to recognize the potential pitfalls of introducing unproven technologies into aid systems."
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