UNICEF invests $100,000 in blockchain startup for the first time, and does not rule out integrating blockchain technology into its own operations in the future

The United Nations Children’s Fund (UNICEF) has invested in a South African blockchain startup as part of its push to promote broader technological innovation.

Back in February, UNICEF indicated it was looking to finance technology projects through an innovation fund it established last year. At the time, UNICEF said it was investigating whether digital identity and remittances were viable investments, and later hired a person focused on blockchain.

Now, UNICEF is beginning to examine companies in this space to strengthen its work in promoting the well-being of children and families. UNICEF has invested in five startups, including its first investment in blockchain startup South Africa’s 9Seeds , which is using blockchain technology to develop identity tools for early childhood education.

9Seeds received approximately $100,000 in funding, which will be used to further expand the platform they have developed.

Chris Fabian, head of UNICEF's Innovation and Venture Capital Office, said UNICEF chose to fund 9Seeds because the company not only advances social development but also has a viable path to profitability.

Fabian told CoinDesk:

“From our conversations, we saw that this company was very cohesive in using complex technology to solve very pressing problems.”

Future Development

The work UNICEF is doing is far from unrealistic; the United Nations (UN) is also conducting its own experiments.

The United Nations Alternative Finance Lab has been testing blockchain technology for the past year for use in microfinance and connected devices, and last month UN diplomatic missions from Bangladesh and El Salvador held a meeting to discuss how blockchain could help the UN achieve its global sustainable development goals.

However, according to Fabian, UNICEF's work will not stop after investing in these startups. This is just the first step of UNICEF's funding plan. UNICEF will start accepting applications for the next round of funding tomorrow. Fabian said that UNICEF may invest in as many as 5 to 10 blockchain startups in the future.

Perhaps most notably, Fabian said UNICEF’s work with blockchain startups could one day include integrating the technology into its own operations.

“I believe that in the near future we will be using blockchain, perhaps the Bitcoin blockchain or some other distributed ledger, to perform central operations.”

He also said:

“I don’t know how much we’ll invest, but for us, investing in a company allows us to start looking at some of the future.”