Crypto

How African refugees used bitcoin to build their own grassroots economy

Comment

How African Refugees Used Bitcoin To Build Their Own Grassroots Economy
Image Credits: Gloire Wanzavalere

When hundreds of thousands of people in the Democratic Republic of the Congo (DRC) fled their homes after the eruption of the Mount Nyiragongo volcano on May 22, a blogger and a fledgling restaurant worker teamed up in the city of Goma and used bitcoin to help displaced families.

Chainglob crypto news founder Gloire Wanzavalere went to the makeshift refugee camp that sprang up nearly overnight, offering to give away bitcoin to displaced families.

He recruited by word-of-mouth, asking people if they knew someone who lost their home. But he quickly found that most of the families had already traded their phones for food. They also left most of their belongings behind, so didn’t have the paperwork needed to open new bank accounts or acquire new devices.

“These people lost everything. I understood it was rational for them to sell what they had left in order to buy food,” Wanzavalere said. “So we bought phones for eight people…12 people benefited from our initiative, four among them already had their own smartphones.”

Wanzavalere was inspired by online news of the bitcoin Beach project in El Salvador, which he said proved poor people can still use bitcoin despite the technical challenges and volatility.

“Coming to their aid with bitcoin was a more powerful act than any marketing campaign could be. That’s when we told ourselves, OK, we’re going to do this in Congo,” the crypto-focused blogger said.

They started with a small, circular workflow. Wanzavalere’s mother owns a small shop in town that sells basic hygiene supplies and nonperishable goods. She agreed to accept bitcoin using her mobile phone, relying on apps like Wallet of Satoshi and Phoenix Wallet.

“Because she is very excited about the idea of helping people with bitcoin, she is considering the option of bringing a few essential goods closer to the refugees, so they can buy what they need without going too far into town. But it’s a complex question in part because of security concerns,” Wanzavalere said.

Meanwhile, Juvin Kombi, who works at Jikofood Restaurant, was busy this past summer setting up his company’s first Lightning Network node. This allowed the restaurant to accept bitcoin payments without high transaction fees or long confirmation times. By September they were up and running, using the restaurant’s PC and sometimes their own personal smartphones when needed. Their preferred mobile wallet apps are Muun Wallet and Blue Wallet.

“The learning process was very long, but the minimum research we have done has helped us understand bitcoin without any support,” Kombi said. “We realized that it was easy to set up. A simple wallet and an internet connection are sufficient. In addition, we are studying the possibility of setting up BTCPay Server in the near future.”

So far just a few of the restaurant’s clients use bitcoin, Kombi added, including the displaced people Wanzavalere distributed the bitcoin to. However, they hope that as more people in the community learn about bitcoin that this payment option will set the small restaurant apart from local competition. The restaurant often hosts educational workshops for customers who want to learn more about using bitcoin.

Wanzavalere said he can relate to Kombi’s statement that bitcoin education takes a long time. Wanzavalere first discovered bitcoin after falling prey to an online scam in 2017. That inspired him to do more research into digital assets, and eventually start his own local crypto news blog.

“The Congolese population is suffering greatly; it never had any stable currency except the U.S. dollar,” Wanzavalere said. “I am not a journalist. However, I started to write about bitcoin issues in Africa because there was a lack of information on the subject in French.”

In the meantime, he fundraised for this grassroots program by inviting international bitcoin fans to participate in a “Lightning Torch.” First, he tweeted that anyone could join the torch, a chain of Lightning Network transactions created by strangers sharing an invoice and sending small amounts of bitcoin to pay it forward to the next invoice holder.

“In total, 18 people contributed. Then the entirety of the funds were sent to me to be distributed to the beneficiaries,” Wanzavalere said. “In less than three hours, all the beneficiaries mastered it, learning how to receive and send money using a bitcoin wallet, which shows that in practice the Lightning Network isn’t that complicated to use.”

Next, Wanzavalere added, he plans to teach beneficiaries how to run a node, like Jikofood Restaurant does, in case they want to help expand the local bitcoin economy to include more small businesses that fully control their own funds. He may also hire some of the beneficiaries to work for his crypto blog.

“We plan to raise more money to help an even larger part of the suffering population,” Wanzavalere concluded. “The money collected by the torch event was meant to be distributed without anything in return. However, this is a long-term idea. Paying the refugees in bitcoin for freelance work could be a source of more community engagement.”

Editor’s note: French translation by @vallard14 

More TechCrunch

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.