Blockchain Is Helping Migrants.
Blockchain is constantly proving itself to be a valuable technology that benefits all industries. It is a technology that is bringing solutions to the toughest of problems. One problem that is worldwide is the refugee crisis. As countries fall into shambles and terrorist organizations take over; millions of families and children are left with only one option; and that is to leave. This is bringing millions of migrants to new countries. These migrants do not have bank accounts, their IDs have been destroyed, and they are forced to start over with very little.
The United Nations estimated that there are around 258 million migrants in 2018. All of these people searching for opportunity. These migrants are faced with an uphill battle to get on their feet. Banking, voting, and loss of identity are only a few of the problems that they face. All of these problems could be solved with blockchain.
- Banking.
It is not new news that the banking industry is going to benefit greatly from blockchain. Some estimate that the banking industry stands to save up to $20 billion a year by using blockchain technology. No wonder banks are heavily investing and exploring options. Migrants and refugees will benefit greatly from blockchain in the banking industry. Blockchain has the ability to create a mobile-first banking system. This means that instead of refugees having to prove their residency and identities, they can simply create a secure account. Blockchain banking applications are faster, more secure, and bring lower rates.
BanQu is one company that is focusing on using blockchain to create banking solutions for the 2.7 billion people in the world who have little to no access to banking. They are focused on the people who have no economic identity. It is very possible that blockchain will allow these 2.7 billion people to enter the global economy.
The fees for a money transfer range between 10% — 20% and can have other fees tacked on for currency conversion. Blockchain and the use of cryptocurrency could see fees as low as 1% and very little for conversion. It is also much faster, reducing speeds down to only minutes.
All of this comes with the greatest benefit of all, security. Blockchain and its smart contracts are very secure. It is incredibly hard to hack and protect transactions from start to the beginning. Security was a big obstacle for migrants and those in 3rd world countries.
2. Digital Identities.
Identification for refugees is a hard thing to keep. Papers get lost and leave them in limbo. Blockchain has the ability to make refugees and migrants identities digital. Mostly due to its amazing security and smart contracts. People will have the ability to create digital identities that these people can use wherever they go. Governments like Lithuania are already exploring the use of blockchain for migrants. Their goal is to create a system that gives them an identity that they can use for the rest of their lives.
3. Not only for the displaced.
Blockchain is not only for migrants. Nonprofit organizations and those working to help develop poor nations are also implementing blockchain. Blockchain could be used to give internet access or phone service to those who do not have a banking system to pay. It can create an opportunity for those who have resources but not a way to receive payment. We are going to see our entire system become more efficient with blockchain. Blockchain is already being implemented to help refugees and will surely prove itself.
Not only can blockchain help the refugees; it can help your industry as well. Get your free consultation to discuss your ideas and how blockchain can help your industry.
