Spanish Red Cross Launches Privacy-First Blockchain Aid System

The Spanish Red Cross has partnered with Billions Network, a decentralized proof-of-personhood solution developed by Privado ID, to introduce a blockchain-based digital payments platform for humanitarian aid distribution. The initiative aims to provide financial transparency for donors while ensuring that aid recipients can access support without exposing their identities or biometric data. The platform, known as RedChain, was developed with technical support from Barcelona-based infrastructure firm Bloock.

According to the organizations involved, RedChain was designed to address growing concerns around privacy and data protection in digital aid delivery. Unlike other blockchain-driven humanitarian programs that rely on biometric identifiers or centralized data collection, the new platform verifies aid distribution outcomes without recording who receives the assistance. This approach allows accountability to be maintained without compromising the safety or dignity of beneficiaries.

Responding to Privacy Risks in Humanitarian Technology

Blockchain technology has gained traction in the humanitarian sector due to its ability to provide near real-time transaction records and auditable trails. However, several large-scale initiatives have drawn criticism for insufficient transparency and weak privacy safeguards, particularly those involving biometric databases. These concerns have highlighted the potential risks of surveillance, profiling, and discrimination faced by vulnerable populations when sensitive data is collected or stored.

The Spanish Red Cross has acknowledged that even projects built with positive intentions can expose recipients to long-term data risks. As a result, RedChain was designed to function strictly as a verification layer. The system anchors cryptographic proofs of aid transactions on the blockchain without storing personal or identifying information. All beneficiary data, including names, contact details, and case histories, remains off-chain within systems fully controlled by the humanitarian organization.

How the RedChain Payment Model Operates

Under the RedChain program, eligible recipients receive digital aid credits directly into their personal mobile wallets, removing the need for a traditional bank account. These credits can be used at approved local merchants through QR code-based payments. From the merchant’s perspective, the transaction is indistinguishable from any other standard digital payment, ensuring recipients are not labeled or identified as aid beneficiaries.

The platform relies on a credential-based model rather than a monitoring system. Beneficiaries retain proof of eligibility within their own wallets and present it only when required. The system is designed to reveal no additional information beyond what is necessary to complete the transaction, allowing recipients to access assistance without fear of being tracked or profiled.

Technical Architecture and Tokenization

For the RedChain deployment, Billions Network collaborated with Bloock to issue aid credits as ERC-20 tokens on Ethereum smart contracts. These tokens represent designated humanitarian funds while preserving the anonymity of token holders. During transactions, only cryptographic hashes, timestamps, and integrity anchors are recorded on the public blockchain. Detailed spending records are stored securely in private, off-chain databases.

The organizations stated that this hybrid architecture enables a complete and verifiable audit trail to be reconstructed using on-chain proofs, while keeping personal data confidential. This design allows donors and auditors to verify fund usage without exposing sensitive beneficiary information.

Billions Network’s Broader Identity Strategy

Billions Network was launched in early 2025 with a focus on privacy-centered digital verification using smartphones and official identity documents, without relying on biometric data. Early pilot programs included tests with major financial institutions such as Deutsche Bank and HSBC. The company has also been working with the government of India on identity verification initiatives linked to the Aadhaar system.

Subsequently, the firm introduced a mobile application that enables identity verification through NFC scans of biometric passports or national ID cards, combined with cryptographic proofs supported by Privado ID’s infrastructure. Beyond humanitarian aid, the company has explored the use of blockchain technology to support verifiable claims, such as age verification, without unnecessary data exposure.

The Spanish Red Cross collaboration highlights how blockchain technology can be applied responsibly in humanitarian contexts, offering a model that prioritizes transparency, accountability, and privacy in equal measure.

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