CARE has announced a collaboration with decentralized finance platform Celo (CELO) to develop its first blockchain project in Latin America.
CARE stated in a press release that it intends to use the Celo blockchain to achieve a faster, cheaper, and more traceable method of delivering aid.
CARE emphasized that the absence of intermediaries in the distribution of funds would allow it to direct more funds toward its mission.
According to the organization, the current centralized system of tracking aid makes monitoring transfers from donor to beneficiary slow and inaccurate. As a result, inefficiencies create opportunities for fraud and graft.
CARE Ecuador will use Celo’s cUSD stablecoin as a voucher-based system to establish a digitized process to improve the secure distribution of aid to Ecuadorian women in need of health services.
The vouchers will be distributed via the Umoja platform by the economic empowerment organization Emerging Impact.
“Blockchain has the potential to provide enormous benefits. We chose Celo not only because their technology is among the best we’ve reviewed, but also because they’ve established a thriving network of like-minded organizations,” said Christian Pennotti, Senior Director, Market Based Approaches at CARE.
Simultaneously, the Celo blockchain will be used by over 150 mission-aligned organizations in collaboration with Emerging Impact and CARE.
Increasing the number of cUSD use cases
The agreement expands the cUSD stablecoin’s use case. Celo used the cUSD for microfinance in the Philippines earlier this year via its remittance app, Valora.
Celo has raised $66.5 million in various funding rounds since its inception, according to Crunchbase data. Andreessen Horowitz, Greenfield One, and Electric Capital are among the notable investors in the project.
Celo’s native token CELO was trading at $3.02 at press time, up about 10% in the previous seven days.