The Polygon blockchain network has partnered with Mercy Corps’ investment arm, Mercy Corps Ventures, to bring blockchain solutions to low-income and underserved communities in developing regions.
Association to build blockchain solutions for the marginalized
Polygon announced the new alliance, which aims to offer blockchain and Web3 solutions to “traditionally excluded and marginalized areas,” in a blog post March 2
According to the announcement, the association will focus on several goals, including providing money for blockchain pilots to open up the financial system to unbanked populations.
The association will also fund hackathons for technology developers serving clients in emerging markets and set up blockchain boot camp roadshows in locations where Mercy Corps is active.
The new partnership comes just weeks after Mercy Corps Ventures revealed its crypto forever Fund II. The organization established the fund to create blockchain-based projects to promote global financial inclusion and increase climate resilience.
The initial version of the fund started in 2022 and had around 200 applicants.
Crypto comes to the aid of disaster victims
Mercy Corps also participated in several crypto community fundraising initiatives to offer relief following the recent earthquake that devastated areas of Turkey and Syria.
The organization stated that it had received a 50/50 split of the roughly $60,000 in total donations made at that time by Binance.
The World Bank Dear All More than 1.6 billion people around the world lack even the most rudimentary checking, savings or mobile money accounts. In addition, they need help to access financial services such as insurance, loans or mortgages.
The cost of financial exclusion is high. It affects people’s quality of life, prevents them from saving for the future, provides few protections if they become ill or lose their livelihood, and leaves them open to predatory and unscrupulous lenders.
Seven of the 17 United Nations (UN) Sustainable Development Goals (SDGs) refer to financial inclusion as a crucial component of improving the lives of marginalized people.
Leveraging Web3 for financial inclusion
According to Polygon and Mercy Corps, blockchain and Web3 solutions have generated a lot of buzz, but the impact has yet to be felt by unbanked populations.
Although there are some actual use cases, most need more quantifiable results to make a business case for the technologies. For that reason, Mercy Corps says it is piloting web3 solutions to test and build the evidence base for promising blockchain innovations that can build financial resilience in disadvantaged individuals and communities.
