Ripple has launched a pilot project that will see its stablecoin, Ripple USD, used for drought relief in Kenya.
Ripple has implemented the Ripple USD stablecoin into its payment service, and this news comes just a few days after that. For the purpose of the program, Ripple is collaborating with Mercy Corps Ventures and DIVA Donate, a platform that makes use of decentralized finance technology to make it easier for people to donate to pastoralists in Kenya who are struggling with drought.
According to Team Ripple, the partners will make use of blockchain technology in order to provide local communities with financial assistance in the form of RLUSD. The trial is a component of Ripple’s larger attempts to broaden its effect on cross-border payments, as described in a blog post.
There is an expectation that these efforts will speed up with the deployment of RLUSD. Aiming to improve transparency, settlement speed, and access for those who do not have bank accounts, the use of stablecoins is similar to the goals of other blockchain-based projects.
The pilot initiative will, according to Ripple, demonstrate how blockchain technology and stablecoins can improve the delivery of social assistance and insurance. Within the Ethereum network, the trial will make use of RLUSD.
You will be able to make a donation to the RLUSD pool for the program by connecting a wallet, and the pool will be accessible to contributions from the general public.
The monies will be held in escrow via smart contracts, and these contracts will automatically pay RLUSD to those who have been affected by the drought. The pilot program, on the other hand, intends to implement automated reimbursements in the event that the technology detects drought conditions by May 31, 2025.
This will only take effect once satellite tracking identifies drought triggers. The system will award each participant with $75 in RLUSD, which is equivalent to around 9,600 Kenyan shillings, in the event that it concludes that pastoralists are going to have a scarcity of vegetation for their animals.
Those in charge of the event have stated that this sum is adequate to provide one animal with food and water for a period of six months.We anticipate that around 533 pastoralists in Laikipia County, Kenya, will benefit from the assistance.
In the latter part of this summer, Ripple intends to unveil the findings of the pilot program. Fund contributors can withdraw their RLUSD or use it in future campaigns.
