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| One of the 1,000 NFTs UNICEF is issuing as part of its 75th Anniversary on behalf of Giga - a project intended to connect schools to the internet |
In our most recent Weekly Digest we asked our readers to share their views of the fast-growing use of crypto-currencies and the buying and selling of digital 'objects' like NFTs (non-fungible tokens). In particular we wondered our readers' views of UNICEF's recent foray into the crypto / NFT world.
"We nowadays hear a lot of hype about crypto currencies. You also might have heard that UNICEF started to sell non-fungible tokens (NFTs). UNICEF will sell those digital collectibles using the Ethereum blockchain.
The editor's team was wondering, whether we are the only ones who remain reserved about this new trend? What do you think? Do you invest in bitcoins or similar assets? Do you have a piece of advice, or warning? Let us talk about it. Write to xunicef.news.views@gmail.com. "
UNICEF's recent report "Prospects for Children Global Outlook 2022" raised serious concerns about impacts that unregulated use crypto-currencies may pose to child protection and child services:
"As we wait to see what direction these trends take us in, the implications for children hang in the balance. The promise of greater financial inclusion offers significant benefits to the livelihoods of families around the world, including through more frictionless remittances and more instant, transparent and efficient social assistance programmes. On the other hand, unregulated cryptocurrencies pose a threat to the stability of financial systems, government revenues on which many child services depend, and children directly when they facilitate unregulated transactions that underpin child trafficking, sexual exploitation, the sale and purchase of content depicting child abuse, and the defrauding and extortion of children. Now is the time to begin incorporating cryptocurrency and digital currency child safeguards into online child protection initiatives."
We note, on the one hand, that UNICEF is partnering with major crypto currency companies and sponsoring the development of crypto and blockchain projects in countries where UNICEF supports programmes for children; while, on the other hand, expressing concerns about the future impacts on children in the same countries.
In case you have missed some of the UNICEF news about its investments in these areas:
Let us know please what views - if any - you have formed about the use of crypto-currencies, NFTs, and so forth. Have you explored them? What do you think:
- on the one hand, of UNICEF's partnerships with global crypto-currency companies, investments in both crypto and NFTs?
- while on the other hand, UNICEF's expression of concern about the possible future impacts of crypto currencies on programmes benefiting children?
ReplyDeleteThis promises to be an interesting discussion. I am mystified about Crypto currencies - Bitcoin etc. - and now "non-fungible tokens" - NFTs. All very mysterious and confusing. On one hand, it's claimed to be an investment opportunity, on the other I read about big losses (- just now, $ 2 billion for Tesla) . NFT using "Ethereum block chain" sounds like promoting a "castle in the sky". I also saw references to mining and not being eco friendly. What does that all mean? UNICEF sells it as a "collectible", but is it something tangible or only a Cyber space "product"? I certainly look forward to learn about it.
The fungi I know is a delicious meal, a cornmeal mixture which we love to eat with fish.
Horst.
I have been doing a lot of high risk sports in the past, but I don't do base jumping (click here) and I don't do crypto.
ReplyDeleteMost people of my generation are aware of efforts in recent years to create an alternate system of currency, banking, and ownership - a system outside the control of governments and traditional institutions like banks. But we chose to leave those efforts to 'the experts', often young entrepreneurs and investers willing to take big risks. For many people many 'non-experts' crypto-currencies and NFTs are the 'hot new thing' and a chance to get rich quickly. They are therefore investing large amounts of money into fields they do not understand.
ReplyDeleteUNICEF's Office of Innovation has been active in partnering with global crypto-currency funds for several years now, including making investments in blockchain startups in at least 8 countries - with more on the way. The announcement that UNICEF will sell 1,000 NFTs is a signal that UNICEF is getting more seriously into the game. The idea is that proceeds from the sales would go into efforts to connect more schools in developing countries to the internet.
While UNICEF's objective is worthy, my concern is that the objective of its corporate partners may be more in terms of using such efforts to promote crypto and NFTs in the developing world.
What I ask is why UNICEF wants to be on the leading edge of this risky flight into the unknown. These financial innovations may very well become our future, but does UNICEF need to lead the way? In particular, does UNICEF need to lead the way among its beneficiary / programme countries?
In many ways this effort reminds me of the Pension Fund's introduction of facial recognition as the means of certifying eligibility of beneficiaries - an effort launched well in advance of legal safeguards and before other major pension and insurance groups venture to do the same.
So yes, innovate - but also take time to let the technology and the safeguards and regulations around the technology get established.
Tom
I have dabbled a little in crypto and yes it's risky. Comments are fair criticism of this new incoming modality - the risk is clear though and one understands that anything can happen. Crypto is in its infancy and unregulated. It’s like the pioneering Wild West right now.
ReplyDeletePersonally, I don’t think it will completely replace traditional financial instruments, but it will take a large market share of those who believe in its future unless governments decide to quash it