CoinTelegraph: Crypto Currency Could Revolutionize Humanitarian Aid

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Interview with Sumita Grote - UNICEF Fund Manager

CT: Could you explain why UNICEF decided to partner with the Ethereum Foundation? 

SG: We had a number of conversations with leading foundations and partners in the space. It was clear that the Ethereum Foundation is closely aligned with the objectives of our fund. They’re focused on developing solutions on public blockchains, and that was key to our partnership and finding common ground. 

CT: Does UNICEF have any concerns about the potential anonymity of contributions to the Cryptocurrency Fund?

SG: At the moment, all contributions follow the standard know-your-customer (KYC) and due diligence processes that UNICEF uses for the contributions it receives in any currency. UNICEF National Committees in France, Australia, New Zealand, and the USA are currently able to accept donations. They are the primary recipients of cryptocurrency donations and they conduct the necessary screening processes. 

Over time we will refine our process and hope to increase the number of national committees able to accept contributions in cryptocurrency, however we will not be accepting anonymous donations. All donations will be publicly visible as part of an ethos of transparency and accountability, to ensure all transactions are traceable from source to recipient. 

CT: Will UNICEF hold cryptocurrency in the Cryptocurrency Fund, or will it just be a pipeline that immediately converts cryptocurrency back to government-issued currency?

SG: No, cryptocurrency-based donations will not be converted to government-backed currencies. The idea is to receive, hold, and disburse crypto as crypto. At no point in the process does it get converted into any other currency. This allows us to fully leverage the benefits that crypto offers. 

We can track all transactions via the blockchain, and can see how recipients use the funds. Recipients have also agreed to not convert the funds into any other digital asset or government-backed currency. UNICEF appreciates that all transactions are stored in the blockchain, and this is part of the reason why we prefer to leave crypto as crypto. 

CT: What are your thoughts about the inherent volatility of digital assets? Does this pose a risk to UNICEF operations? 

SG: No, the volatility of cryptocurrency does not impact our operations because we are choosing to leave crypto as crypto, including in our financial statements, where cryptocurrency will be reported as crypto. Because there is no conversion, and because contributions in crypto are accounted for separately from other currencies, volatility doesn’t impede our ability to provide services. 

CT: Will proceeds from the Cryptocurrency Fund go towards UNICEF's general operations, or will it be directed to a specific project?

SG: Currently, the application of crypto-based donations is limited to our Cryptocurrency Fund and contributions are used to support companies expanding their blockchain solutions. Right now cryptocurrency donations are not used to support the services that UNICEF traditionally provides for children. UNICEF selected and funded these companies based on their ability to provide services and technologies that generate value and good for those in need across the world. 

Our innovation fund has made more than 70 investments, including a handful of blockchain and crypto-oriented companies from developing and emerging markets. Three of these companies have received a grant from the crypto fund, and will use it to expand and refine their platforms. 

The recipient companies