UN to use Stellar Blockchain to Transfer USDC Stablecoins to War-Affected Ukrainians

UN agency UN High Commissioner for Refugees (UNHCR) is developing a blockchain method to deliver cash to Ukrainians impacted by the continuing Russian invasion. Kyiv, Lviv, and Vinnytsia are serving as test sites for the program, as these are the three cities to which many Ukrainians have fled after their homes were destroyed by Russian missile attacks or in search of shelter for their families. The UNHCR is responsible for verifying the eligibility of recipients and allocating the relief aid.

The United Nations High Commissioner for Refugees (UNHCR) has announced a new blockchain-based relief initiative in which qualifying users’ Stellar-based Vibrant digital wallets would be credited with USDC, a stablecoin tied to the U.S. dollar. According to a statement, there are 4,500 MoneyGram locations throughout Ukraine, where aid recipients may convert the funds into dollars, euros, or local currency.

The pilot project will employ Stellar Aid Assist, a Stellar-based product that enables users to transfer money promptly and securely on the blockchain, and will be carried out in conjunction with the United Nations International Computing Center (UNICC), which acts as a technical solution provider.

For fleeing Ukrainians, and primarily for those whose banks are inaccessible, this pilot project providing humanitarian assistance using a digital wallet, will serve as a possible lifeline for survival. The project itself is a vivid example of how blockchain has the potential to transform and revolutionize the way humanitarian funds are allocated.

Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine

The ability to store cryptocurrency funds on a mobile device makes it possible to travel across national boundaries or great distances without the need to worry about changing cash into other forms of cash. The cash will be dispersed to individuals who have been most adversely affected by the conflict in order to assist with covering expenses such as food, rent, medical care, and heating costs throughout the winter.

UNHCR has been collaborating for years with the tech sector, which has played a crucial role in helping us to innovate to deliver assistance faster, as speed is of the essence in humanitarian action.

Karolina L Billing, UNHCR Representative

The United Nations High Commissioner for Refugees (UNHCR) is responsible for determining who is eligible for assistance and distributing it. This allows the UNHCR to assist people who have been displaced as a result of war in meeting their fundamental requirements. According to Denelle Dixon, the CEO of Stellar Development Foundation, this method ensures that the money reach individuals who need them “quickly, transparently, and without the need for bank accounts or credit or debit cards.”