Blockchain’s Impact on Afghanistan: Algorand’s Strategic Investment in HesabPay
In a groundbreaking move aimed at empowering Afghanistan’s unbanked population and revolutionising digital payments, the Algorand Foundation has unveiled a strategic investment in HesabPay, an innovative, interoperable digital payments platform in Afghanistan. The announcement was made during the prestigious Algorand Impact Summit held in New Delhi, where prominent global leaders converged to discuss the transformative potential of blockchain technology in addressing pressing global challenges.
Live from the #AlgoImpactSummit, Algorand Ventures is proud to announce a strategic investment into @HesabPay_.
HesabPay is a payment platform that gives Afghans access to much-needed funds across 400 districts and 34 provinces.
HesabPay has emerged as a true game-changer in Afghanistan’s financial landscape. Initially developed to respond to the humanitarian aid crisis, this platform leverages the Algorand blockchain’s speed and reliability to facilitate digital transactions. Beyond its humanitarian roots, HesabPay has expanded its offerings to encompass various services, including buying airtime, settling electric bills, and seamlessly transferring digital funds to other users.
Empowering Humanitarian Initiatives
One of the standout features of HesabPay is its profound impact on humanitarian efforts. Distinguished organisations such as the World Food Programme have harnessed the platform to channel funds to beneficiaries in Afghanistan directly. The platform has facilitated over 51,000 humanitarian cash transfers, ensuring that crucial assistance reaches those in need. Additionally, HesabPay has played a pivotal role in enabling the payment of more than 1.3 million electricity bills, further enhancing the quality of life for Afghan citizens.
Addressing Financial Exclusion
2/ We're excited to continue to collaborate with @HesabPay_ as they explore expanding to similar jurisdictions such as Syria, Iraq, Yemen, and more. pic.twitter.com/RwCfozGOEs
Afghanistan faces a significant financial inclusion challenge, with a staggering 85% of its adult population remaining unbanked, according to data from the World Bank. HesabPay’s intervention has been instrumental in bridging this gap. A recent study by the London School of Economics (LSE) underscored the effectiveness and transparency of digital payments in assisting those most in need. The study revealed that over 98% of the digitally transferred funds were utilised for local purchases within the first eight weeks, resulting in improved nutrition and reduced skipped meals among recipients.
Blockchain’s Role in Global Financial Inclusion
The strategic investment in HesabPay by the Algorand Foundation aligns with their commitment to sound monetary supply economics, decentralised governance, and fostering a thriving open-source ecosystem. Algorand’s blockchain technology facilitates transactions at the speed of traditional finance, offering immediate finality and near-zero transaction costs. This landmark investment, announced at the Algorand Impact Summit, is a powerful testament to the potential of blockchain as an efficient, reliable, and transparent solution for addressing the financial needs of the global unbanked population.
A Promising Future: Algorand’s Collaborative Endeavors
In addition to its strategic investment in HesabPay, the Algorand Foundation also unveiled partnerships with Mann Deshi, the Self-Employed Women’s Association (SEWA), and the United Nations Development Programme (UNDP) during the Algorand Impact Summit. These collaborations reflect a shared commitment to leveraging blockchain technology for positive social impact and driving financial inclusion on a global scale.
As the Algorand blockchain continues to pave the way for transformative financial solutions, HesabPay stands as a beacon of hope in Afghanistan, offering economic empowerment and inclusion to those who need it most. Through strategic investments and partnerships, the Algorand Foundation reaffirms its dedication to making a tangible difference in the world’s financial landscape, one innovative blockchain project at a time.
