Among the many challenges that refugees face, one that has been an obstacle across the board is recovering or proving identity in order to access basic goods and services. Without access to a banking, social security, or credit history, all kinds of essentials from registering and receiving aid to paying bills to obtaining employment are extremely difficult. However, Jouko Salonen, director of the Finnish Immigration Service, says, “We have found a way to solve that.” 
Now, a Finnish startup called MONI has developed a system that can help asylum seekers, essentially giving them an instant, strongly-authenticated identity which can be tracked and built up. A MONI card, based on blockchain technology, also appears to work just like an ordinary credit card, and functions like a bank account, diminishing stigma and making it possible to pay bills and purchase groceries, and lowering barriers to finding employment.
Blockchain Identities
Instead of cash, which does little to help a newcomer to a country start establishing their identity for access to services like transport, purchases, jobs, and security checks, Finland has been giving asylum seekers prepaid Mastercards for the past two years. However, the new solution is better still. Implementing blockchain technology means increased security and efficiency.
Finland may be at the head of implementation, but it is not alone in turning to blockchain technology and cryptocurrency for solutions. An EU task force has been investigating ways to use the Ethereum blockchain to tackle the issue of refugee identity and social services. The United Nations has also been exploring using this technology to give IDs to those who do not have them.
Recently, it was announced that the United Nations has been involving Microsoft and Accenture Plc to build a digital ID network based on blockchain technology. This is part of an ongoing effort to address the need to provide 1.1 billion people worldwide, including asylum seekers and at-risk individuals, with legal documentation.
We have already seen implementation of blockchain technology for use in refugee camps. From May 2017, refugees in Jordan’s Azraq camp have already been using blockchain technology to access food and supplies, with a system based on verifying identity through an eye scan. The World Food Program has turned towards blockchain as a way to integrate information into one ledger, increase security and efficiency, and cut down on costs.
However, the MONI card and Finland’s decision to use it in this way is a new, very public way to address a common problem in the sector.
“We have found a way to solve that.”
Every transaction made through a MONI card and similar services will be recorded in a public database. It will be maintained by a global network of computers, and decentralized. This upholds security and also means that the Immigration Service will be able to track the cardholders and any purchases they make.
A prepaid credit card and mobile app is currently being offered on the MONI website to consumers. The blockchain-based service is now only available to beta testers within Finland, however. MONI has plans to launch a consumer product throughout Europe soon on a membership basis, for a monthly fee and low percentage on international transactions.
Antti Pennanen, the company’s founder and CEO, however, makes it clear that the focus is on inclusivity and assisting those who can’t access most financial systems. In Technology Review he says that “Our purpose has always been financial inclusion, and especially to help people in developing countries.” He expects significant demand to arise for the program once it is available in other countries.