Ripple distributes 25,000 RLUSD stablecoins to aid Kenyan livestock farmers combating drought.
In a groundbreaking move, global blockchain platform Ripple, humanitarian organisation Mercy Corps Ventures, and digital finance solution provider DIVA Donate (though specific details about DIVA Donate's involvement are currently unclear) have joined forces to address the pressing issue of drought affecting Kenyan herders. The pilot program, aimed at helping rural communities in Laikipia County, Northern Kenya, will provide stablecoin donations to subsidize food and water costs for animals during periods of crippling drought.
Leveraging blockchain technology, the partnership aims to deliver transparent, rapid, and traceable aid to those in need. By utilising Ripple's efficient cross-border payment capabilities, international donors can facilitate direct support to local recipients, bypassing costly fees and slow processes common in traditional financial systems.
The program will utilise the Normalized Difference Vegetation Index (NDVI) to determine vegetation density and predict drought conditions. Smart contracts are programmed to trigger payouts to farmers once the NDVI's sensors reach the drought threshold in the specified area. This innovative approach ensures that aid is distributed only when and where it is needed most.
However, it is important to note that while Ripple has a history of partnering with financial institutions and fintech firms for payments and remittances, there are no recent, widely publicized details of a joint project specifically using blockchain to aid Kenyan herders. If such a partnership were active, it would likely involve digital wallet solutions, blockchain-based identity for aid recipients, and smart contracts to trigger payments based on real-time data (e.g., drought conditions or livestock losses).
The pilot program plans to support more than 500 farmers in Laikipia County, with each pastoralist receiving $75. However, the funds will only be released based on the NDVI's drought level readings, ensuring that aid is targeted where it is most needed. Ripple has contributed 25,000 RLUSD to the program, Ripple's recently launched USD-pegged stablecoin, which will be distributed through the Ethereum blockchain.
This collaboration represents a significant step forward in the use of blockchain technology for humanitarian purposes, demonstrating its potential to revolutionise aid distribution and oversight, ultimately leading to a more accountable, efficient, and effective response to crises such as drought.
- The collaboration between Ripple, Mercy Corps Ventures, and DIVA Donate utilizes blockchain technology, specifically Ripple's USD-pegged stablecoin, which will be distributed through the Ethereum blockchain.
- The approach of the pilot program in Laikipia County, Northern Kenya, involves the use of smart contracts powered by blockchain technology, monitoring the Normalized Difference Vegetation Index (NDVI), and triggering payments based on drought conditions.
- In this partnership, blockchain technology is employed to deliver rapid, transparent, and traceable aid to Kenyan herders, bypassing traditional financial systems' costly fees and slow processes, and potentially revolutionizing aid distribution for environmental-science related crises such as drought.
