One Billion Lives: Blockchain for Mental Health Funding

Blockchain is the new frontier in mental health funding.

Sustainability is no longer just a buzzword—it’s a necessity across all sectors, including mental health. The world is facing an unprecedented mental health crisis. One billion people across the world suffer from mental illness.

Traditional funding mechanisms often fail, bogged down by inefficiencies. We see a big number of intermediaries, high administrative costs, and lack of accountability.

Blockchain is a decentralised, transparent, and immutable technology that has the potential to revolutionise how funds are distributed, monitored, and used. With blockchain, we can allocate funds quickly, transparently, and effectively to the communities that need them the most.

In this article, we explore how blockchain can be the cornerstone for sustainable mental health initiatives and a broader force for good.

The Challenges in Mental Health Funding

The mental health sector struggles with common funding challenges, much like other traditional systems. Here are the problems we observe the most:

Slow Allocation: Bureaucratic processes delay funds from reaching those in need. This is particularly problematic during crises where timely intervention is crucial.
Transparency Issues: Donors and funding bodies often have limited visibility into how their contributions are used. That means less trust and less willingness to donate.
High Administrative Costs: Intermediaries and administrative expenses consume a significant chunk of funds. That means only leaving less for on-the-ground efforts.
Accessibility: How to access funding if you never had an ID or a bank account? Distributing funding in cash is costly and insecure. 1.7 billion people in the world have no access to the traditional banking system.
Stigma: This one never gets old. In some regions, children with mental health issues are kept away from families due to shame and cultural prejudice. Would someone use funds for mental health treatment when given the cash, or rather prefer to spend it on more “acceptable” needs?

We need inclusive solutions that fund initiatives for treating mental health.

We must protect people`s privacy at any cost, as mental illness is heavily stigmatised in many parts of the world.

For donors and benefactors, we have to show that their money creates impact and reaches the ones who need it the most.

How To Use Blockchain for Mental Health Funding?

1. Decentralised Fund Allocation

Blockchain allows sending funds directly to those in need without relying on middlemen.

For example, the ICRC uses a blockchain system developed with Partisia Blockchain to distribute aid as digital tokens. These tokens are sent to people in need and can be used to buy goods or services. This process is faster and avoids the delays caused by complicated systems or too many steps. Moreover, it is designed to protect the privacy of the final beneficiary of funds.

Funds can be channelled directly to community organisations and therapists for mental health initiatives. One can also fund individuals in need directly—without months of red tape.

2. Smart Contracts for Conditional Funding

Smart contracts are self-executing agreements with predefined conditions. They are a game-changer for accountability.

For instance, a donor specifies that funds for a mental health program are released only when certain milestones are achieved, such as organising workshops or delivering therapy sessions. Or a person can receive funds only when they stick to the treatment plan and therapy sessions.

The conditional funding mechanism ensures that resources are used as intended and increases trust in the system.

3. Transparent Tracking of Mental Health Funds

Blockchain’s immutable ledger gives real-time visibility into mental health fund allocation and utilisation. Every transaction is recorded, offering donors and stakeholders a clear picture of how their contributions are making an impact.

In a mental health context, this could mean tracking the allocation of funds from a donor to a beneficiary. For example, I want to help establish a community therapy centre in my home country. Or maybe I want to send money for training mental health professionals in a remote area.

There are ways to protect the privacy of those suffering. The cooperation between ICRC and Partisia Blockchain shows how to send humanitarian aid using a solution that fully protects the privacy of the individual who receives the funds.

4. Reduced Costs

Blockchain funding automates processes and removes intermediaries. That means we have lower administrative expenses. Further down the line, more funds go directly toward mental health initiatives or affected people.

5. Microtransactions for Global Inclusion

Blockchain supports microtransactions. Sometimes, even a small donation makes a difference in someone`s life. This opens up funding opportunities from individuals who can only contribute modest amounts. Imagine more people directing a small amount to the cause they care about.

For example, a private European donor could easily fund a mental health community in a remote African village. Thanks to the blockchain, they will see the direct impact of their donation.

6. Privacy and security

Blockchain offers full transparency of transactions, and for a long time, we questioned privacy. But nowadays, we can use solutions that fully protect the privacy of the beneficiary.

Of course, cash is a simple way to provide funding while preserving privacy, but it is also far from secure in areas with high violence and conflict.

Example Scenario: Mental Health Funding in Remote Communities

Imagine a blockchain-powered platform connecting global donors to mental health initiatives in underserved areas.

Here’s how it could work:

A donor commits $1000 to support therapy sessions in a rural community.
The funds are recorded on the blockchain and allocated through smart contracts.
A local mental health organization receives $200 upon hiring a counselor, another $300 upon hosting a community workshop, and the remaining $500 after delivering therapy sessions to a specified number of individuals.
Donors can monitor these milestones in real time, making sure their contributions drive meaningful impact.

This simple scenario demonstrates how blockchain can simplify the funding process and making sure that funds reach the right people at the right time.

Broader Implications for Sustainability

The benefits of blockchain extend far beyond mental health. This model can be replicated for a variety of sustainability initiatives, such as:

Funding clean water projects in drought-stricken areas.
Supporting tree planting and reforestation efforts.
Providing resources for education in underserved communities.

Blockchain is not a Holy Grail for all the world`s problems. However, it is a powerful technology that allows us to build scalable, transparent systems for the critical global challenges.

Addressing Concerns

While blockchain offers immense potential, it’s not without challenges.

Critics often point to the environmental impact of traditional blockchain models, but newer technologies like proof-of-stake significantly reduce energy consumption.

Additionally, the digital divide remains a barrier—efforts to increase digital literacy and access in marginalised communities are essential for widespread adoption.

Conclusion

With blockchain technology, we have the power to transform sustainability initiatives. We can create more efficient and transparent systems. Blockchain helps us foster global inclusivity. In the mental health space, funds reach those in need quickly, without the burden of excessive intermediaries or opaque processes.

Governments, NGOs, and private sector leaders have to adopt blockchain-powered solutions. We can tackle pressing challenges in mental health and lay the foundation for a more sustainable, equitable future.

What additional examples do you have for sustainability funding? Comment below.