While the humanitarian agency has always been in favor of crypto assets, UNICEF seeks to protect children from the potential dangers of the digital asset market.
The crypto industry has been subject to multiple hacks in recent months, with some platforms unable to recover stolen funds. However, system breaches aren’t the only things to be worried about - rug pulls have surrounded NFTs and Altcoins that attract investors usually with cheap prices and fake road maps.
With that being said, one of the most notable social welfare organizations UNICEF has had its hand in cryptocurrencies for a while now. The agency has been investing in blockchain startups since 2016, and, currently, has its own investment branch called CryptoFund.
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It is designated towards people in developing countries who are looking for financial solutions via digital assets and blockchain technologies.
While the initiative has been going off lately, according to the report, UNICEF calls for certain security measures for people who are interested in blockchain technologies due to its decentralized nature and unregulated markets.
That is because there is a risk of money laundering and other criminal activities that the anonymity of cryptocurrencies may provide. Therefore, UNICEF looks to include large companies and government authorities to ensure that the digital asset market is safe to use.
"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." - Unicef
Knowing that cryptocurrencies went off the charts in recent times, especially during the pandemic, UNICEF predicts that the interest in digital assets will only grow in the future.
According to the social welfare organization, as a response to the pandemic, the "number of active mobile money accounts in Latin America grew by a stunning 67 per cent in a year."
Likewise, UNICEF highlighted the newest crypto initiatives that may spur the adoption of digital currency. That includes financial payment companies like Visa who are implementing digital asset support for their debit cards, and central bank digital currencies (CBDCs).
