Evaluation of Blockchain-based Cash Transfer Pilot Programme in Nepal
Executive Summary
About
Nepal's geographical complexity, active tectonic plates and frequent seismic events place it among the world's top 20 most multi-hazard-prone countries. The annual monsoon season swells rivers and streams, causing flooding that damages villages, agricultural lands and displaces residents. Jaleshwor Municipality in the flood-prone Mahottari District in Madhesh Province is one such area with a significant vulnerable population. The COVID-19 pandemic exacerbated the challenges faced by these households, impacting their livelihoods and increasing the demand for alternative income sources.
The Government of Nepal has implemented policies and frameworks to address disaster displacement, including the use of cash transfer programmes for emergency relief. However, these programmes often face logistical challenges, such as delays in reaching affected populations, underscoring the growing need for immediate and efficient humanitarian aid delivery.
To address these issues, the integration of blockchain technology into humanitarian cash and voucher assistance (CVA) programs is being explored. Blockchain offers potential benefits such as transparency, accountability, reduced corruption, improved security and programmability within CVA initiatives.
The Rahat pilot programme, a collaboration between Jaleshwor Municipality, UNICEF Office of Innovation (OoI), UNICEF Nepal Country Office and Rumsan, aims to enhance humanitarian aid efforts through blockchain-based digital cash and voucher systems. This innovative approach focuses on promoting financial inclusion, accountability, and transparency in cash transfers.
This evaluation assesses the effectiveness, transparency, scalability, and cost-effectiveness of the Rahat programme, with the objective of informing funding decisions and generating technological and other insights. It seeks to not only demonstrate the potential of blockchain-based CVA systems in Nepal but also provide a blueprint for advancing humanitarian efforts and shaping future strategies.
