The Cambridge Centre for Alternative Finance (CCAF) has published a new study on the use of digital assets to facilitate cash-based transfers regarding humanitarian aid. CCAF, part of the Cambridge University Judge School of Business, is the top research entity in the Fintech sector. The research was backed by the UK Foreign, Commonwealth and Development Office.
The report entitled “Considering Digital Assets for Humanitarian Cash-Based Transfers,” posits that digital assets can assist in the process in the distribution of value.
CCAF states that benefits appear in various ways – given there is appropriate oversight, management and regulatory conditions. By utilizing digital assets, recipients can benefit from improved privacy, and lower costs in comparison to traditional transfers while mitigating local currency challenges. As many aid beneficiaries are underbanked – or not banked at all – digital assets can facilitate goals for these populations where more traditional services fell short.
Bryan Zhang, co-founder and Executive Director of the CCAF, says tech can play a key role in making humanitarian aid more efficient and secure. At this same time, challenges may exist, like existing policy or logistical issues.
“This study explores the potential of utilizing digital assets for cash-based-transfer programs in a humanitarian context and used the Philippines as a case study to advance our understanding of this complex issue.”
The research highlights factors for improving operations and cash-based-transfer programs and points to further research in terms of benefits and challenges for agencies and beneficiaries in other local contexts, says Nick Dyer, Director General of Humanitarian and Development, the UK Foreign, Commonwealth & Development Office.
“As a leading humanitarian donor, and given the increase in humanitarian crises globally, the UK is keenly interested in these efforts to use digital assets appropriately to improve our collective humanitarian response for the benefit of those in need.”
CCAF claims there is little data on the subject beyond the review of the pilot. While industry insiders frequently tout the benefits for the transfer of value – especially in regions hit hard by hyperinflation, CCAF believes their research shows promise for digital assets.
The study is part of the Cambridge Digital Assets Program, a multi-year research initiative that aims to shed light on the rapid digitization of assets and value transfer systems. CCAF is collaborating with 14 different public and private entities to uncover meaningful insight on the topic.
The report may be downloaded here.