How Finland is using Smart Contracts to Help Asylum Seekers
Problem
When refugees are granted asylum in a new country, their struggle is far from over. They often have to wait weeks or months for their identity to be processed, and since they have nothing to start with, the government has to provide them with special provisions just so they can survive. But even then, many refugees don't receive their documents, and some try to forge them, which makes it hard for them to get loans or thrive in their new country. In some cases, their identity is purposefully destroyed, and they are forced into horrific situations like prostitution and child labor.
Solution by Finnish Government
Finland has found an amazing solution to help refugees settle into their new country. They use a technology called blockchain and smart contracts on Ethereum, which are self-executing contracts with terms of agreement written in code. The Finnish immigration service partnered with a local startup called "Money" to create a special MasterCard for asylum seekers. This card is linked to the unique digital identity stored on the blockchain, which makes it easier for refugees to receive government benefits and salary disbursements. This system works better than traditional banks and brings refugees officially into the banking system.
For example, if John is an asylum seeker, he might be eligible for a 30% subsidy on essential commodities and a 5% subsidy for gas in the first year. In the second year, he might be eligible for only a 20% subsidy on essential commodities and a 3% subsidy on gas. The MasterCard will automatically update to reflect these changes. The smart contract can also put limitations, like revoking subsidies if John's income exceeds $10,000 for three months in a row.
There is also a feature called the "circle of trust," where if John borrows money and consistently pays it back, his credit score will go up. This can help him borrow money from financial institutions and start a business, which can contribute to the economy. All of these processes are done on the blockchain with minimal human intervention, which reduces corruption.
This solution is so amazing that the European Union plans to spend $2 billion on blockchain solutions to solve pressing problems. The power of blockchain and smart contracts can help refugees settle into their new country and contribute to the economy.
Watch the full video:-
We help to empower small businesses through knowledge. Follow us for more insights!
