Page 12 - ARUBA TODAY

A12 WORLD NEWS
Thursday 23 May 2019
Nonprofits turn to cryptocurrency to help needy Venezuelans

By MANUEL RUEDA rency platforms. In Europe,
Associated Press Bitnation, a humanitarian
BARQUISIMETO, Venezuela agency, has enabled hun-
(AP) — Andreina Cordero dreds of refugees without
started the year skipping bank accounts to receive
meals so her three kids direct donations through
could eat. Her husband, a bitcoin accounts. In Jordan
construction worker, was the World Food Program
out of a job. And the fam- delivers aid to 100,000 Syr-
ily's savings had been dev- ian refugees by creating
astated by the nation's digital currency accounts
hyperinflation, limiting Cor- for each recipient, using
dero's children to a diet of blockchain technology
rice, beans, pasta and fried but official currencies. To
corn patties. pay for goods, refugees
But the family got a break only need to have their iris
from their daily struggle to scanned in participating
feed themselves this spring stores.
when a social worker en- Paul Lamb, a nonprofit
rolled them in a program management consultant
run by a Silicon Valley start- based in California, says the
up that is donating cryp- idea of distributing funding
tocurrency to hundreds of directly to people in need
Venezuelan families. In this April 11, 2019 photo, customers choose groceries that will be paid using cryptocurrency in is becoming increasingly
Every week from February Barquisimeto, Venezuela, Thursday, April 11, 2019. popular among humani-
to April, Cordero received Associated Press tarian groups, because in
a deposit of EOS tokens some contexts it is cheaper
through a cellphone app. to feed themselves. Venezuelans already try to packaged foods and basic than organizing the logistics
She then traded the digital "Crypto has the highest protect their savings from goods that the couple re- required to physically hand
money for local currency likelihood of being helpful hyperinflation by purchas- sells out of their home. "Now out food or medicine. Usu-
through online transfers to people in places where ing U.S. dollars and even we can take our time and ally these money transfers
and used the funds to shop money is broken" said Joe gold nuggets, saving in we know that our earnings are made through debit
in market stalls. Waltman, executive di- crypto offers a solution to are in a safe place." cards in the local currency.
"We finally got to eat chick- rector of GiveCrypto, the store wealth that may be Waltman said the Barqui- But humanitarian groups
en" Cordero said. "And charity that provided direct physically safer than hold- simeto experiment was the are also starting to look at
there were also vegetables transfers to Cordero and ing on to cash or precious first stage of a larger ef- cryptocurrency.
for the kids." more than 100 Venezuelan metals in a crime-infested fort to promote the use of "It's harder for someone to
The three-month trial in families in Barquisimeto with country. Online platforms cryptocurrency in Venezu- steal cryptocurrency," said
crypto transfers is now over, the aid of EOS Venezuela, that allow Venezuelans to ela, using "stable" curren- Hugh Aprile, the Colombia
and the family is back to a local blockchain devel- buy and hold U.S. dollars cies whose values have less country director for Mercy
skipping meals and eating oper. "And there's probably provide a similar service. fluctuation than bitcoin. Corps, a nonprofit that has
mostly beans and rice. But no better example of bro- Storing cryptocurrency A similar initiative, known as handed out debit cards to
Cordero is thankful for the ken money right now than presents greater financial an "airdrop," is being devel- 7,000 Venezuelan refugees.
time that digital currency Venezuela." risks than holding U.S. dol- oped by AirTM, a currency "And in situations where you
saved her kids from malnu- GiveCrypto's program pro- lars, though, due to the exchange platform based have high inflation, it can
trition. vided temporary help to wild swings in the value of in Mexico City that plans to ensure the stability of the
"I'm very grateful for what vulnerable families by pro- some crypto assets, includ- donate small amounts of funds being transferred."
they did for us" Cordero viding them with a weekly ing bitcoin. But in Venezu- cryptocurrency to 100,000 But aid programs that dis-
said. "It would be a blessing deposit worth around $7 ela, where the local bolivar people in Venezuela this tribute cryptocurrency also
if something like that were — or about the same as currency has lost two-thirds summer. So far, it has raised face several challenges.
set up again." Venezuela's monthly mini- of its value this year, some $300,000 from donations to- In Venezuela, power cuts,
Over the past decade, mum wage. The organiza- merchants are willing to ward its $1 million goal. like the one that recently
cryptocurrencies like EOS tion is also aiming to make give this technology a shot. The one-time payment of left much of the country
and bitcoin have become people familiar with crypto In Barquisimeto, Leticia no more than $10 a person in the dark for days, knock
popular among inves- apps so they can transfer Luque, an informal mer- will provide only momen- out the internet connec-
tors looking to make large their own earnings into digi- chant, said she began to tary relief. But the goal is tion needed to use cryp-
profits from a new and tal currency and use it to accept crypto payments also to encourage Venezu- tocurrency. And connec-
anonymous form of storing buy goods, long after they two months ago at the re- elans to engage with the tions for many are iffy even
wealth. have stopped receiving quest of a social worker col- AirTM platform. when there is power. A
But a handful of charities free deposits. laborating with GiveCryp- "We want to show Venezu- tightly controlled currency
are also now using digital "We want to show that peo- to's direct transfer scheme. elans how to hold money system that punishes finan-
currencies to send relief ple who are not techies or She said the technology outside their local curren- cial crimes with jail time
directly to those in need, investors can also benefit has helped her gain time to cy," said Joshua Kliot, the has also discouraged some
circumventing banks and from this technology," said barter for better prices with organization's co-founder. merchants from accept-
companies that handle re- Efrain Pineda, the project's suppliers and plan what "The biggest impact this ing cryptocurrency. "Mer-
mittances. They've found manager and head of op- she will buy next. could have is to crypto-ize chants who accept crypto
the ideal testing ground in erations at EOS Venezuela. "We used to be in a rush the country." and are public about it risk
Venezuela, where the an- "Anyone can use crypto to to purchase goods before And it's not just in Venezu- being inspected by the
nual inflation rate by some protect themselves from in- our bolivars lost their value" ela where nonprofits are government," said Randy
estimates has soared to a flation and make their daily said Luque, whose hus- attempting to help vulner- Brito, the founder of Bitcoin
staggering 67,000%, forcing life easier." band travels every week able people by introduc- Venezuela, a cryptocurren-
millions to scavenge daily While many middle-class to Colombia to stock up on ing them to digital cur- cy education group.q