Using blockchain technology to streamline anticipatory action in Nepal

A new initiative in Nepal is exploring how blockchain technology can make cash transfers – a commonly used type of anticipatory action – more efficient and transparent. Through Rahat, a humanitarian access platform, the initiative is using blockchain to create a secure and immutable ledger of transactions, thus reducing the risks of fraud and corruption.

The initiative will take place over 15 months in the flood-prone areas of Kailali and Kanchanpur districts in Nepal's Sudurpaschim Province. Beginning during the 2024 monsoon season, it aims to reach more than 5,000 vulnerable people in these areas. As well as helping to ensure that every cash transfer is tracked and accounted for, it will also help aid agencies and communities to adopt digital tools and technology. Overall, this should increase the efficiency of anticipatory action and improve financial access in hazard-affected areas. “We generally have a very short time between receiving the weather forecast that signals the possibility of an extreme event, and the actual event,” explains Alina Karki, senior social protection programme officer at the Danish Red Cross. “Given this challenge, we are exploring innovative technologies that can streamline and expedite our work, so that we can reach people with much-needed humanitarian support on time.”

Rahat is one of the grantees of the GSMA Innovation Fund for Anticipatory Humanitarian Action, which has funding from the UK’s Foreign, Commonwealth & Development Office. The Danish Red Cross is also a partner in the project. “[We are] very grateful to the Danish Red Cross and the GSMA Innovation Fund for believing in our mission of helping the most vulnerable ones to get access to immediate finance against climate shocks, using innovative technologies,” says Shristi Piya, chief development officer at Rumsan Associates Pvt Ltd., which oversees the Rahat platform.

Streamlined cash transfers and automated triggers

During the current testing phase, the project team are refining the Rahat platform to streamline the process of transferring cash to beneficiaries, as well as building in measures for accountability and automation. They are also looking into ways to automate trigger mechanisms for anticipatory action, using blockchain technology. This would allow for faster, more transparent and more accountable communication when a trigger is reached, reducing workflows and ensuring that early warnings are communicated in a timely manner.