UNICEF Leverages Blockchain to Drive Innovation in Emerging Countries

UNICEF: Investing in Technology for a Better Future

The United Nations International Children’s Fund (UNICEF) has consistently worked to improve lives globally, with a particular focus on children in developing countries. Recognizing the potential of emerging technologies, UNICEF has expanded its efforts through its Innovation Fund, launched in 2016, and its Cryptocurrency Fund, introduced in 2019.

With investments in blockchain technology and cryptocurrency, UNICEF is positioning itself as a leader in leveraging digital tools for social impact.

UNICEF Innovation Fund: Supporting Emerging Technologies

A Vision for Global Impact

The Innovation Fund was created to invest in startups developing cutting-edge technologies in emerging markets.

• Portfolio Reach: UNICEF has invested in over 50 startups across 35 countries, aiming to positively influence billions of lives, especially children.

Blockchain at the Forefront

UNICEF identified blockchain as a transformative technology capable of delivering global impact.

• First Blockchain Investments: A year and a half ago, UNICEF provided $100,000 in equity-free funding to six startups, three of which focused on blockchain solutions.

The Role of the Cryptocurrency Fund

In October 2019, UNICEF launched its Cryptocurrency Fund, supported by the Ethereum Foundation. This fund enables UNICEF to manage and disburse cryptocurrency investments directly, streamlining support for open-source technology projects.

Milestones

• Largest Crypto Investment: On June 20, 2024, the Crypto Fund invested 125 ETH (Ethereum) into eight open-source technology startups.
• Planned Investments: UNICEF announced an additional $100,000 (in USD and crypto) for blockchain startups.

Chapiro’s Perspective

Cecilia Chapiro, UNICEF Ventures investment advisor, noted:

“UNICEF’s crypto fund has reached a new level of growth, accommodating funding for five to eight more open-source blockchain projects.”

How UNICEF Supports Startups

One-Year Portfolio Experience

UNICEF’s Innovation Fund offers a unique one-year program for portfolio companies:

1. Equity-Free Funding: Startups receive financial support to develop prototypes.
2. Non-Financial Benefits: Companies gain mentorship, exposure, and networking opportunities.
3. Investor Preparation: UNICEF helps startups prepare to attract additional funding after the program ends.

Focus on Open-Source Technologies

UNICEF prioritizes open-source projects that have scalable potential to benefit large populations.

Impact of Blockchain Investments

1. Promoting Financial Inclusion

Blockchain’s decentralized nature empowers communities by enabling:

• Transparent fund distribution.
• Reduced reliance on traditional financial intermediaries.

2. Enhancing Accountability

Blockchain ensures immutable records, reducing fraud and improving trust in aid distribution.

3. Scaling Impact

Through blockchain, UNICEF supports scalable solutions that can reach underserved communities, bridging gaps in access to technology.

Key Startups in UNICEF’s Blockchain Portfolio

First Cohort (2023)

UNICEF initially funded three blockchain-focused startups to explore use cases in areas like supply chain management, identity verification, and education.

Latest Investments (2024)

With the 125 ETH investment, UNICEF expanded its portfolio to include eight additional startups developing open-source blockchain solutions.

Challenges and Opportunities

Challenges

1. Regulatory Barriers: Varying global regulations on cryptocurrency and blockchain technology can limit adoption.
2. Scalability Issues: Ensuring that blockchain solutions can scale to benefit millions requires significant resources.

Opportunities

1. Emerging Markets: Developing countries offer fertile ground for blockchain solutions to address systemic inefficiencies.
2. Increased Transparency: Blockchain fosters trust and transparency, crucial for humanitarian efforts.

Conclusion: UNICEF’s Blockchain Vision

UNICEF’s investment in blockchain technology underscores its commitment to innovation and its belief in the transformative potential of emerging technologies. Through its Innovation Fund and Cryptocurrency Fund, UNICEF is fostering scalable solutions to tackle challenges in developing countries, empowering communities, and improving lives.

With plans to support more startups in the coming year, UNICEF is setting a precedent for leveraging blockchain to drive global change.

To learn more about innovative uses of blockchain for social good, explore our article on blockchain technology in humanitarian efforts, featuring groundbreaking projects reshaping the future.