UN uses blockchain technology and USDC stablecoins to assist distressed Ukrainians

Carrying cash is unsafe for homeless people all around the world since it can be misplaced or stolen. To provide relief to Ukrainians who have been forced to leave their homes, the UN has moved to blockchain payments.

Internally displaced people (IDPs) and others impacted by Russia’s invasion of the nation will receive digital currency transfers as part of a pilot programme by the Stellar Development Foundation (SDF). The UN Refugee Agency, UNHCR, is using crypto to prevent this while still giving relief to individuals affected by Russia’s incursion and internally displaced people from Ukraine.

UNHCR will transfer USDC, a stablecoin pegged to the U.S. dollar.  A digital wallet called Vibrant that can be downloaded onto a smartphone is loaded with USDC. This vibrant wallet operates on the Stellar blockchain, through a new blockchain-based humanitarian initiative.  There are 4,500 MoneyGram locations throughout Ukraine where clients can pick up their payments in dollars, euros, or local currency. According to the SDF, the blockchain-based system enables “the swift, efficient, and secure distribution of monetary assistance directly into the hands of persons receiving help with full value transfer traceability and accountability. 

Traveling long distances or across borders without worrying about money exchange is made possible by carrying cryptocurrency on a mobile device. The money will be given to individuals most affected by the war to assist with expenses like winter heating, rent, food, and medical care.

The UNHCR representative in Ukraine, Karolina Lindholm Billing, stated in the press release that the organization has been collaborating with the IT industry for years. This collaboration has been crucial in enabling us to innovate so that we can provide aid more quickly, which is essential in humanitarian action.

The UN’s aid effort provides an illustration of a real-world use case for cryptocurrencies despite a difficult few months for the industry, including last month’s collapse of FTX and the accusations filed against former CEO Sam Bankman-Fried. Cryptocurrency has significantly contributed in the disbursement of payments to refugees and the Ukrainian government months after Russia invaded the country.