Digital Forms of Payment in the context of humanitarian organisations

Back in 2023, Koosai released an internal review document on digital forms of payments in the context of humanitarian organisations. The document itself is confidential; nevertheless, below are the high-level take-aways.

Digital payments, blockchain-based digital assets and CBDCs are all different means of conducting financial transactions in a digital format. The internal review explores the differences and similarities between these three forms of digital payments and assess applications as well as implications for the humanitarian sector. Digital payment refers to the various electronic methods of making payments, such as online banking, e-wallets, mobile banking, and other similar methods. Blockchain-based digital assets, on the other hand, are digital assets that use blockchain technology to record transactions and provide secure ownership of assets, without the need for a central authority. Finally, CBDCs are digital currencies that are issued and backed by central banks. These currencies are designed to function as legal tender, with the potential to replace traditional fiat currencies. The purpose is to help getting a common understanding of these topics so that humanitarian organisations can understand how best engage with these solutions now and in the future.

It is essential to ensure that the adoption and implementation of digital forms of payment, whether it concerns cash inflows or outflows, align with fundamental principles such as humanity, impartiality, neutrality, independence, voluntary service, unity, and universality to guarantee that they contribute positively to humanitarian efforts, protect the rights and dignity of individuals, and promote financial inclusion and transparency in humanitarian operations. By upholding these principles, humanitarian organisations can navigate the challenges and opportunities presented by digital payments while remaining true to their core values.