Entrepreneurs often succeed by identifying needs and inefficiencies in existing systems to create something new or of greater value, potentially leading to significant profit. In the humanitarian world, large-scale systems were traditionally developed by those already in the space, but the rise of Web3 technology is changing how people view and use solutions from innovative entrepreneurs worldwide.
In Afghanistan, where 97% of the population lives below the poverty line and many face food insecurity, the need for humanitarian aid is crucial. The Algorand Foundation has invested in HesabPay, a digital payments platform founded by Afghan entrepreneurs, to facilitate electronic cash aid delivery. This innovation is revolutionary in a country with limited financial infrastructure, enabling users to send and spend digital Afn for various purposes.
HesabPay, registered as an Electronic Money Institution, chose the Algorand blockchain for its interoperability, security, and transparency benefits in a country plagued by mistrust in traditional financial institutions. All transactions are logged on the blockchain for verifiability, revolutionizing trust-building between financial institutions, aid organizations, and recipients. The platform has grown rapidly, with thousands of families receiving assistance and hundreds of thousands of users engaging in transactions monthly.
The success of HesabPay reflects the potential for entrepreneurial initiatives to disrupt the aid delivery industry and profoundly impact the lives of those in need. The platform’s expansion to other distressed countries like Syria and Yemen could transform the way cash-based assistance is delivered and recorded in challenging environments. By focusing on addressing a pressing need and seizing a business opportunity, HesabPay demonstrates the positive impact of technology-focused startups in improving humanitarian outcomes.
The utilization of innovative technologies like blockchain in humanitarian efforts signifies a shift towards more efficient and transparent processes, addressing challenges such as limited liquidity and mistrust in traditional financial systems. HesabPay’s model of digital cash aid delivery could pave the way for greater adoption by multiple agencies, influencing the future of humanitarian assistance in crisis-ridden regions. Entrepreneurs’ ability to create value and drive innovation in addressing critical societal needs highlights the potential for technology to make a meaningful difference in the lives of vulnerable populations.
