Ripple announced to donate $10 million to a non-profit that is working on the creation of economic opportunities for those who are unbanked or under-banked.
Ripple explained in a blog post that the Coronavirus pandemic has motivated people to go for digital payments. In emerging markets, the current financial framework is not equipped to fulfill the needs of citizens.
Empowerment of Economic Opportunities
Mercy Corps is an international non-profit that has a mission to empower people with new economic opportunities. Last year, Mercy Corps has helped and empowered almost 28 million people through different programs. Mercy Corps Ventures, the investing arm of Mercy Corps, has partnered with “innovative social entrepreneurs to scale solutions to the world’s most persistent challenges, including financial exclusion.”
Ripple has been working on financial inclusion since September 2018 when it launched the initiative “Ripple for Good” whose major motive was to educate people about digital payments and economic empowerment. At that time, Ken Weber, Head of Social Impact at Ripple, explained we should ensure “innovations in banking and global payments are available everywhere to everyone, among unbanked and underbanked populations.”
Ripple for Good then rebranded into Ripple Impact in October 2020, which has 4 major goals, including Blockchain for Good, Financial Inclusion, Blockchain Education and Diversity, and A Greener Future.
The company has given $10 million to Mercy Corps so that it will create awareness about blockchain technology, cryptocurrency, and digital payments in the emerging markets. Ripple will also educate field staff of Mercy Corps as it is a three-year initiative.
1.7 Billion Are Unbanked
According to Senior Managing Director at Mercy Corps Ventures, Scott Onder, almost 1.7 billion people are unbanked because the current financial structure is antiquated and fragmented.
People, having unbalanced finance access, will have to know about the upcoming technology such as blockchain. Blockchain and digital currency can transform the old financial framework into an advanced global financial hub.
Ripple’s supported initiative called FinX is the joint mission of Mercy Corps and Mercy Corps Ventures that will “reimagine the existing financial system” for unbanked people.