Oxfam Readies Phase Two of Dai-Based Vanuatu Disaster Relief Program

Following the first phase of the Unblocked Cash program in Vanuatu, Oxfam is readying to launch the pilot program's second phase using the Dai stablecoin to distribute disaster relief.

Speaking exclusively to Cointelegraph, Oxfam Pacific Cash and Livelihoods lead and co-founder of partner company Sempo Nick Williams discussed the challenges and successes of the program's first phase as well as the changes planned for the second pilot phase.

Throughout April and May of this year, Oxfam conducted the first phase of its Unblocked Cash program across two communities in Vanuatu.

The Unblocked Cash utilized MakerDAO's Dai stablecoin as a means of exchange among Vanuatu citizens, with the program intended to explore distributed ledger technology as a means of disbursing financial aid and facilitating the restoration of basic trade following a natural disaster.

The two trials saw 200 residents and 34 vendors from the Vanuatu villages of Pango and Mele Maat provided with tap-and-pay cards that were loaded with 4,000 Vanuatu vatu worth of Dai.

Initially, Oxfam considered the possibility of Sempo paying out vendors using an international wire, but quickly found that the settlement times for international wire transactions in Vanuatu were extremely long.

Hart also notes that the first two options explored were also "Extremely expensive," with the fees incurred making up a large percentage of the total sums that Oxfam was paying to vendors.

Secondly, Oxfam plans to conduct the program on the island of Tanna in the south of Vanuatu, with Hart noting that "Cash transfers have never been used" on the Island.

The second phase will see Oxfam trial delegating much of the program's administration to local stakeholders - such as community disaster and climate change committees, local churches, the Red Cross society and government officials.

Moving forward, Hart stated that Oxfam is viewing the second phase as the start of a larger scaling process that will see the platform employed in jurisdictions that are "Remote and less connected to the formal financial infrastructure."