ReFi: The Financial Revolution That Prioritizes the Planet

‘Am I talking to a brick wall?’ is a common Irish saying that translates to' are you listening to what I am trying to tell you? This frustration must be so common for activists and sustainability advocates who see the same mistakes, same discussions and same solutions being promoted when assessing the needs of future generations. 

According to the Credit Suisse Global Wealth Report, in 2021 the world’s richest 1 percent, those with more than $1 million, own 47.8 percent of all the world’s wealth. This is up from 45.8 percent of total wealth share in 2020. Their data also show that adults with less than $10,000 in wealth make up 53.2 percent of the world’s population. The enormous inequalities we continue to see across all counties is not sustainable if future generations are going to thrive and cater for their families. 

The time to change behavior and encourage the adoption of newly developed solutions is here. As long as industrial leaders have the willingness to try, regenerative finance offers the potential to have vast, positive consequences for large swaths of people who have been locked out of global financial systems to date. 

Last week I sat down with Gabriela Chang, CSO and Co-Founder of EthicHub, a leading project in the world of regenerative finance. Chang speaks from on the ground experience working with farms in Latin America. Connecting small farm holders with the means to support their families and production through ReFi is an inspirational vision. Not only does it have a long terms positive impact, it has completely overhauled accessibility to impact investment projects from global lenders and direct buyers who want to support the changes needed for a sustainable future. 

Challenging the status quo

The collaborative approach between ReFi projects using blockchain solutions is a broader way in which emerging technologies can be used to tackle some of the biggest problems that we face.

In a world plagued by social and economic disparities, a transformative force is emerging. ReFi challenges the status quo of traditional finance and seeks to broaden how we think about using our financial resources. Let’s get acquainted with Regenerative Finance, a burgeoning field with the potential to revolutionize the impact that individuals and organisations have when it comes to creating sustainable environments and improving living standards.

What is ReFi?

Regenerative Finance, aka ReFi, represents a departure from the profit-driven mindset that has dominated traditional finance for decades. Instead, it focused on circular economies. This form of finance exists to promote sustainability and offer financial rewards for investing in transparent, blockchain based financial services that give back to underserved environments and communities. 

It has the potential to foster financial inclusion through decentralized ecosystems and provide much needed financial resources to sustainable infrastructure and resources that take care of our environment. Examples include Ethichub, Bitgreen, Regen Network and Geoblocs. 

Enabling Communities to access much needed funds

What sets ReFi apart is its commitment to empowering communities and granting them control over their financial systems. By prioritizing sustainability, ReFi enables communities to have access to more financial resources and take charge of their economic situation. Ethichub for instance is working directly with farming communities to provide new means of financial support. 

Moreover, ReFi is using innovative technology to provide a secure and transparent way to promote a more resilient food system. In the past we have spoken about the challenges facing the consumer when they want to support sustainable agriculture. 

With ReFi gaining more traction, it is worth considering the implications for small, working, farming communities. In the future individuals and organisations will be able to track the communities that they are supporting from production to distribution. It is not difficult to disassociate from the farmers who produce the products that line our supermarket shelves. 

However, more consumers are interested in understanding the short and long term impact of their shopping behavior. As the green-friendly consumer buying trend continues, organisations need to be proactive in their approach to sustainability and ReFi provides an opportunity to create value within these farming communities, giving vital resources to those who need it most.

Driving real world change using Web3 technologies

ReFi presents an exciting opportunity for builders and founders to drive real change. By leveraging innovative Web3 technologies, the potential for reinventing the financial infrastructure is unprecedented. ReFi has introduced new business models that reward sustainable approaches to farming practices. By combining investment opportunities with the creation of green friendly business practices, a whole new market for sustainability opens up.  

So, how can individuals get involved in the ReFi movement? The key lies in collaboration and action. Joining organizations like the Climate Collective or applying to accelerators like Celo Camp offers opportunities for mentorship, funding, and community engagement. Founders and builders with ideas to change the world should seize this moment to contribute to the ReFi ecosystem and help shape a brighter future for all.