GiveCrypto Monthly Update — February 2020: Phase 4 Launched, Inbound Donations and Emigration Loans
We launched Phase 4 of the Venezuelan Ambassador Program on February 17th. This phase will feature a Randomized Controlled Trial that compares the impact of cash with crypto. As part of the experiment, we will distribute funds to over 1,000 families. Participants will be asked questions about the following areas before, during and after the program:
- Food security
- Psychological well being
- Food consumption
All of the participants will be placed into one of the following treatment arms:
- Crypto — receive $10 per week in ETH for 15 weeks
- Cash — receive $10 per week in bolivars for 15 weeks
- Control — paid to complete impact surveys (for a total of $40)
Transfers will begin the first week of March and continue through mid June.
Inbound Fundraising at GiveCrypto.org
Most of GiveCrypto’s donations have come from members of the crypto community and were the result of outbound fundraising efforts. You can see the list of people that have given on our donation page. Thanks to Coinbase Commerce, our site allows anybody to make an inbound donation to the charity (in crypto, of course). We saw a big jump in online donations in February. Although most donors prefer to remain anonymous, we suspect that the increase in donations are the result of our recent integration with Coinbase. These integrations make it easier for Coinbase users to donate to GiveCrypto.
Emigration Loans
We mentioned in January’s update that we have been experimenting with crypto native financial services in developing countries. The thinking behind this work is that financial infrastructure is lacking in these places. And that we may be able to have outsized impact by using crypto/blockchain technology to provide services like savings accounts and loans.
Those of us who live in the developed world likely take the availability of financial services for granted. It is relatively easy to open a bank account, get a credit card and qualify for a loan. This is not the case in other parts of the world.
Our work in Venezuela has taught us a lot about the plight of people living under the effects of hyperinflation. The most desperate are forced to leave the country, often times with no money. Some are literally walking for days/weeks to find a better life for themselves and their family.
Due to emigration’s potential impact, we decided to experiment with an ‘emigration loan’ in Venezuela. The loan will pay for transportation to a new country and up to three months of living expenses. This will allow recipients to travel in a safe and dignified manner. It also gives them a reasonable period of time to get established and look for work, rather than being forced to take the first job that is available. We have incorporated a social component to encourage repayment. If the recipient repays, they choose who gets the next loan.
We give all of our loans in USDC and have found that crypto is actually more efficient than fiat for these loans. The loans are given while the recipient is in Venezuela and paid back after they move to another country. Using fiat would require us to deal with cumbersome foreign exchange issues in multiple countries. Additionally, getting fiat into a place like Venezuela is difficult.
We have already made six of these loans, and have six more planned for March:
Most of our recipients recently traveled and are still getting acclimated. Here are quotes from the first two emigration loan recipients, who traveled in December and January, respectively.
“When I arrived in Colombia, I experienced some job instability, because I did not have an immigration permit that would allow me to work legally. However, I found jobs that generated income, lower than the minimum wage but I at least had income. The loan has helped cover basic expenses such as food and rent. This has made me save more time to look for better job offers to get more money and cover expenses.” — Cesar P.
“The loan received from GiveCrypto has allowed me to have greater peace of mind during my arrival, because it is very difficult to obtain a job offer that generates the necessary income to cover the needs and keep up with the expenses. I was originally planning to move to Bogota. But, the capital has become an expensive city, making the situation more complicated for a person who has just arrived and is looking for new options. I’ve since decided to move to Medellin, where costs are lower and there seems to be more job opportunities for someone with my experience.” — Astrid R.
Staying Connected
As always, we love to hear from our donors and supporters outside of our updates and events. Please follow along on Twitter and our blog for updates on our Venezuelan Ambassador Program and other programs.
