Binance Charity Foundation, the philanthropic arm of global cryptocurrency exchange Binance, announced the launch of an innovative impact token together with the global humanitarian organization Mercy Corps. The initiative marks one of the first steps towards radically transforming the way charities interact with their beneficiary populations.
Binance Charity’s Second Impact Token: Humanity First Token
Binance Charity and Mercy Corps have designed and issued one impact token called “Humanity First Token” (BHFT) the use case of which is to improve the living conditions of the refugees who fled from South Sudan to Uganda before further plans are solidified. The token is issued on Binance Chain with its value pegged to Uganda Shilling, the fiat currency in Uganda and backed by the bitcoin reserve previously donated by crypto project TRON to Binance Charity. Binance Uganda exchange guarantees the redemption of BHFT into Uganda Shillings.
Humanity First Token is the second of its kind. In July 2019, Binance Charity Foundation issued the Pink Care Token (PCAT) aiming to provide reusable sanitary pads to millions of young women suffering from period poverty in the world. Both tokens are part of a series of impact tokens on Binance Charity’s plan. Binance Charity’s vision is to utilize blockchain technology for positive social impact.
“We are excited to pilot the "Humanity First Token" with Mercy Corps. Pegged to the Uganda shilling and powered by blockchain technology, the digital wallets help include refugees in the financial system, both now and if they choose to return home. Crypto is borderless and so is humanity,” said Helen Hai - Head of Binance Charity Foundation.
Borderless Accounts for the Displaced
During the project, as beneficiaries, the refugees are able to receive a certain amount of Humanity First Token directly in their Trust Wallet account and exchange the token for food, solar panel, and other essential items at local vendors. The vendors are able to redeem the tokens they receive at Binance Uganda exchange.
One may wonder the necessity of using cryptocurrency in the process of this humanitarian aid. These refugees are forced into a foreign land and do not have enough identity certificates to open up regular bank accounts. The situation in the refugee camp is also quite delicate since they might get transferred to another camp or, if fortunate enough, back to their homeland. Thus, even though they have bank accounts, it is still hard for them to take the accounts with them everywhere they go. However, with cryptocurrency, which is totally borderless, they are able to get access to their digital accounts anywhere in this world.
Successful Delivery on Market Day
In order to offer hands-on instructions of using crypto wallet and currency, Binance Charity and Mercy Corps organized several Market Day events at Uganda’s Bidibidi Refugee Camp and showed people how they could buy food, agricultural tools and even solar energy systems with a simple tap on their phone.
Vickey is a 53-year-old widow living with her five children in the Bidibidi resettlement camp. She said, “I am very happy. Without solar [power] in this camp, you are in darkness. I have been in darkness for over a year now because I could not afford solar.”
Cecillia Tokwaje, 40, came to Uganda from South Sudan after losing her husband to the war. She took eight children with her. "We came to save our lives,” she said. Cecilia grows the food she needs for her family and has used our new digital currency to buy a watering can. “The watering can will help me water the garden during the dry season.”
Blockchain ensures trust and transparency
Similar to all other philanthropic projects initiated by Binance Charity Foundation, all transactions in the Humanity First Token project will be shown on Binance Charity Foundation’s website, under this project’s page: https://www.binance.charity/help-refugees. Binance Chain guarantees the transparency, efficiency, and accountability of the project.
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