How Blockchain Is Kickstarting the Financial Lives of Refugees

Finland’s digital money system for asylum seekers shows what blockchain technology can offer the unbanked.

Syrian refugees disembark from their plane as the Asaaid Alkhateb family shows their relief and happiness after arriving from Athens, Greece at Lappeenranta airport on October 31, 2016 in Lappeenranta, Finland — Milos Bicanski/Getty Images

By Mike Orcutt

Finland’s digital money system for asylum seekers shows what blockchain technology can offer the unbanked.

For a refugee in a new country, identity — at least in the official sense — can be among the hardest things to recover. And without an official ID it is nearly impossible to advance in society.

Finland, which like many European nations has recently seen a large influx of asylum seekers, is using a cryptographic ledger called blockchain to help them get on their feet faster.

For two years the Finnish Immigration Service has been giving asylum seekers who don’t have bank accounts prepaid Mastercards instead of the traditional cash disbursements, and today the program has several thousand active cardholders. Developed by the Helsinki-based startup MONI, the card is also linked to a unique digital identity stored on a blockchain, the same technology that underpins the digital currency Bitcoin.

Bitcoin has demonstrated how blockchain technology can be used to transmit value between individuals without the need for…