Closing the hype gap: Introducing the Crypto For Good Fund
On 15 March 2022, Mercy Corps Ventures launched a fund to drive financial inclusion through blockchain.
Photo courtesy of Mercy Corps.
The hype of blockchain for underbanked populations has not yet been matched by the reality in emerging markets. While some real world use cases exist, most lack the measurable outcomes to build a business and impact case for these technologies.
So, what does this mean for the 1.7 billion people in the world who are currently unbanked? We know that smallholder farmers, communities in remote areas, refugees, informal workers, microentrepreneurs, and unemployed youth each confront different challenges and inequities that need to be uniquely addressed.
Some may not have access to official identity documents, credit history, or verifiable income. Some live in informal settlements, and may have limited internet connectivity. Others are on the move, whether pursuing shifting livelihoods, or fleeing conflict, socioeconomic collapse, and climate change. We need tenacious tech-forward startups, careful human-centered design, and a commitment to working in challenging and previously underserved market contexts.
At Mercy Corps Ventures, we’re seeking partners to responsibly pilot and de-risk crypto and blockchain powered solutions, keeping un- and underbanked people at the center of their design, to radically improve what they have access to.
Our newly launched Crypto for Good Fund aims to drive global financial inclusion through a series of pilots in partnership with up to ten startups, building an evidence base to prove the scalability of blockchain-enabled solutions in emerging markets.
We’ve done this before. Working with Celo and Appen, we used crypto to enable a 93% reduction in cross-border transaction fees for digital workers in Kenya, boosting income and employment opportunities for low-income youth. Working with Acre Africa and Etherisc, we applied smart contract based insurance policies that would automatically pay out when flooding hits, so that smallholder farmers can remain financially resilient to climate shocks. Working with Sokowatch, we integrated a new DeFi-powered service for merchants who own small, informal shops in Rwanda, incentivizing savings and enabling better cash flow management.
Many organizations are talking about crypto for good, but pilots are the real-world use cases to prove it.
Photo courtesy of Mercy Corps.
WHAT IS THE FUND
Mercy Corps Ventures is offering $1 million in grant funding to startups (up to $100,000 each) looking to pilot scalable blockchain solutions that can drive financial inclusion in emerging markets. We aim to close the ‘hype gap’ by catalyzing real world use cases for financially underserved populations.
OUR OBJECTIVE
Our objective is to build the evidence base for innovative financial technologies in frontier markets. For example, how and to what extent are blockchain, digital assets, and cryptocurrencies useful in expanding and accelerating financial inclusion and resilience for low-income and un/unbanked populations?
WHO WE’RE LOOKING FOR
Impact-driven entrepreneurs and tech-focused startups, with a preference for gender-balanced and local leadership teams.
WHAT WE’RE LOOKING FOR
Startups building innovative digital financial solutions with massive potential to reach scale using blockchain-powered technology. MCV is looking for entrepreneurs using tech such as tokens, NFTs, digital wallets, lending protocols, digital ID, DAOs, smart contracts, and more, to expand financial access for the underbanked.
WHERE WE WANT TO APPLY THESE SOLUTIONS
Solutions for financially underserved populations in frontier economies in Africa, South and Southeast Asia, Latin America, the Caribbean, the Middle East, Pacific Islands, and Western Balkans.
* * *
We’re excited to continue sourcing innovative crypto and blockchain solutions in 2022. The tools to enable an inclusive and truly equitable global financial system are now within reach. Join us.
Image courtesy of Mercy Corps.
