November 21, 2022 Crypto and other Web3 tech is being used experimentally on at-risk communities Author(s): Minderoo Centre for Technology and Democracy Refugees and low-income populations are at the frontline in absorbing the risks and failures of Web3 technological development such as cryptocurrencies. Researchers at the Minderoo Centre for Technology and Democracy, University of Cambridge, today [Nov 21, 2022] release a new report into the growing number of experimental blockchain-based projects such as cryptocurrencies that are targeting refugees, aid beneficiaries, and other low-income communities. The implications for real communities and institutions are only just emerging. These previously untested technologies are being trialled to deliver key services to marginalised groups in precarious socio-economic positions. These technologies do not address the root social and economic problems these groups are facing, and introduce a range of new risks to people who are already in disadvantaged positions. The report by Dr Margie Cheesman, affiliate at the Minderoo Centre for Technology and Democracy, demonstrates 3 key areas where Web3 experiments are targeting marginalised groups: -Payment: Humanitarian payment projects replace established payment providers with non-traditional commercial tech partners. Untested new payment rails are launching with inadequate redress and safeguarding mechanisms. -Currency: Cryptocurrencies and other alternative currencies enhance users’ exposure to acute financial risks like scams, fraud, and volatility. Large scale currency projects are collecting, tracking, and monetising the personal data of users in countries across the Global South. -Identification: Decentralised ID solutions are not currently addressing the political conditions that hamper certain communities’ access to services and mobility. Many of these projects shift the responsibility of personal data management to users, and do not necessarily improve privacy. “The implications for real communities and institutions are only just emerging.” The report exemplifies how poverty and disaster are major frontiers of capital accumulation by technology companies and infrastructure providers striving for dominance in ‘emerging markets’, with Web3 companies and start-ups developing models and patents in settings like refugee camps where tax, data protection and other regulation, accountability, and the rights, liberties, and choices of users are diminished. Dr Cheesman said: “Previously untested Web3 technologies are being trialled to deliver key services to marginalised groups in precarious socio-economic positions. “The implications for real communities and institutions are only just emerging.” The report is informed by Dr Cheesman’s fieldwork with refugee women who are now required to receive aid via Web3 tools: “Many of these projects promise autonomy and empowerment, but they involve difficult reconfigurations, demands, and ruptures to people’s economic lives, and they are not necessarily driven by the concerns, choices, and priorities of the marginalised groups they are targeting.” Recommendations: Based on the findings of the report, the researchers have 3 recommendations: 1) Web3 technologies, especially untested cryptocurrencies, should not be imposed experimentally on marginalised communities Users missing out on choice or alternatives or are not in position to turn down the incentives start-ups provide. They are exposed to unintended consequences, risks, and a range of accessibility issues and demands. 2) Public institutions must coordinate around vetting private Web3 companies. Organisations such as humanitarian agencies must share learnings from Web3 initiatives, build internal technical capacities, and critically analyse and vet blockchain/crypto vendors and advocates based on a comparative evidence base. 3) We need critical, qualitative evidence-based research on the design, maintenance, and use of Web3 technologies. Further research will help undercut assumptions about the emancipatory properties of blockchain such as decentralisation, privacy, and trustless-ness. About the Minderoo Centre for Technology and Democracy The Minderoo Centre for Technology and Democracy is an independent team of academic researchers at the University of Cambridge, radically rethinking the power relationships between digital technologies, society and our planet. We are based in CRASSH. More information: www.mctd.ac.uk For press enquiries, please contact Jeremy Hughes, External Affairs Manager, Minderoo Centre for Technology and Democracy, University of Cambridge: jph79@cam.ac.uk