Difficulty obtaining identification cards, Ugandan refugees break through financial restrictions with Bitcoin

Due to the cumbersome process of applying for identification cards, refugees and children in orphanages in Uganda are unable to open bank accounts, so they have turned to using Bitcoin for transactions. The Republic of Uganda is a landlocked country in East Africa, and it is the largest refugee-hosting country in Africa, providing a home to over 1.6 million refugees and asylum seekers.

Bitcoin Innovation Hub Teaching Refugees How to Use Bitcoin

According to a report by Forbes, the Bitcoin Innovation Hub in Kampala, the capital of Uganda, is equipping refugees with practical skills to help them become small business owners. These skills include programming, hairstyling, and food preparation. Additionally, the organization is teaching refugees how to earn, buy, and spend Bitcoin.

Due to the lack of identification documents, these refugees are unable to open bank accounts, but Bitcoin doesn't ask where your ID is, does it?

Difficulty in Obtaining National ID in Uganda

The Ugandan government established the National Identification and Registration Authority (NIRA) nearly a decade ago, with around 60% of the country's citizens registered. Citizens need an ID issued by NIRA to apply for a SIM card, conduct transactions at banks, register to vote, and access medical services.

However, obtaining a national ID in Uganda is extremely challenging, leaving those not captured in the system excluded from banking and public services. A report by the Center for Human Rights and Global Justice describes the process of obtaining a national ID in Uganda as a "nightmare." Additionally, most banks are unwilling to serve refugees.

Aside from refugees benefiting from Bitcoin's peer-to-peer services in refugee camps, scenes of Bitcoin payments have also been realized in the rural Bugiri region of Uganda. Brindon Mwiine, founder of Gorilla Sats and supporter of an orphanage, mentioned that the Ugandan orphanage accepting Bitcoin donations now sees 70% of payments made in Bitcoin to vendors and facility maintainers.

Mwiine noted that some children in the orphanage do not have national IDs, and the process of obtaining IDs for them can be cumbersome, as many of the children were found at churches or mosques. Bitcoin serves as a tool to help these children overcome financial barriers as they grow up, just as it currently aids refugees in Uganda without IDs.