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How African Refugees Used Bitcoin to Build Their Own Basic Economy – TechCrunch

As hundreds of thousands of people in the Democratic Republic of the Congo (DRC) after the eruption of the Nyiragongo volcano on the 22nd, families displaced.

Chainglob’s crypto-messaging founder Gloire Wanzavalere went to the makeshift refugee camp that was built almost overnight and offered to give away Bitcoin to displaced families.

He recruited through word of mouth and asked people if they knew anyone who had lost their home. But he quickly found that most families had already traded their phones for groceries. They also left most of their belongings behind, leaving them without the paperwork necessary to open new bank accounts or purchase new equipment.

“These people have lost everything. I understood it was sensible to sell what they had left to buy groceries, ”said Wanzavalere. “So we bought cell phones for eight people … 12 people benefited from our initiative, four of whom already had their own smartphone.”

Wanzavalere was inspired by online news about the Bitcoin Beach Project in El Salvador, which proved that poor people can still use Bitcoin despite the technical challenges and volatility.

“Helping with Bitcoin was a more powerful act than any marketing campaign could be. We said to ourselves: Okay, we’ll do it in the Congo, ”said the crypto-oriented blogger.

They started with a small, circular workflow. Wanzavalere’s mother owns a small shop in town that sells basic toiletries and durable goods. She agreed to accept Bitcoin on her mobile phone, relying on apps like Wallet of Satoshi and Phoenix Wallet to do so.

“Because she is very excited about the idea of ​​helping people with Bitcoin, she is considering the possibility of introducing the refugees to some basic necessities so that they can buy what they need without walking too far into town. But it’s a complex issue partly because of safety concerns, ”said Wanzavalere.

Meanwhile, Juvin Kombi, who works at the Jikofood restaurant, was busy setting up his company’s first Lightning Network node last summer. This enabled 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 if necessary. Her favorite mobile wallet apps are Muun Wallet and Blue Wallet.

“The learning process was very long, but the minimal research we did helped us understand Bitcoin without any assistance,” said Kombi. “We found that it was easy to set up. A simple wallet and an internet connection are sufficient. We are also looking into the possibility of setting up a BTCPay server in the near future. “

So far, only a few customers of the restaurant use Bitcoin, added Kombi, including the displaced, to whom Wanzavalere distributed the Bitcoins. However, they hope that this payment option will help the small restaurant stand out from the local competition as more and more people in the community learn about Bitcoin. The restaurant often hosts educational workshops for customers who want to learn more about how to use Bitcoin.

Wanzavalere said he could refer to Kombi’s statement that Bitcoin education takes a long time. Wanzavalere first discovered Bitcoin after falling victim to online fraud in 2017. That inspired him to do more research on digital assets and eventually start his own local crypto news blog.

“The Congolese people suffer a lot; it never had a stable currency other than the US dollar, ”said Wanzavalere. “I’m not a journalist. However, I started writing about Bitcoin topics in Africa because there was a lack of information in French on the subject. “

In the meantime, he raised funds for this basic program by inviting international Bitcoin fans to take part in a “Lightning Torch”. First, he tweeted that anyone could join the Torch, a chain of Lightning Network transactions created by strangers who split a bill and send small amounts of Bitcoin to be forwarded to the next bill-holder.

“A total of 18 people took part. Then all of the money was sent to me for distribution to the beneficiaries, ”said Wanzavalere. “In less than three hours, all beneficiaries have mastered it and learned how to receive and send money with a Bitcoin wallet, which shows that the Lightning Network is not that complicated to use in practice.”

Next, Wanzavalere added, he plans to teach beneficiaries how to run a node like Jikofood Restaurant in case they want to help expand the local Bitcoin economy with more small businesses that have complete control over their own funds. He may also be hiring some of the beneficiaries to work for his crypto blog.

“We plan to raise more money to help an even larger segment of the suffering population,” concluded Wanzavalere. “The money raised through the torchlight event should be distributed for no consideration. However, this is a long term idea. Paying refugees in Bitcoin for freelance work could be a source of more community engagement. “

Publisher’s Note: French translation by @ vallard14

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