A growing number of human rights organizations from around the world are turning to crypto and blockchain technology as solutions to challenges in underdeveloped or conflict-torn countries caused by lack of financial infrastructure or adequate identity verification.
The UN High Commissioner for Refugees (UNHCR) will send aid through a new blockchain-based humanitarian project. Cryptocurrency for Ukrainians Displaced by Russian atrocities.
The Stellar Development Foundation announced on December 15 that it has partnered with UNHCR to provide USD Coin, a stablecoin pegged to the US dollar, for the vibrant digital wallets of eligible applicants.
Beneficiaries can receive funds in dollars, euros or their own currency, which they can exchange at MoneyGram outlets around the world. In Ukraine, according to a report, there are 4,500 MoneyGram locations.
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The program’s developers hope that this will allow refugees to access aid more easily, regardless of whether or not they have access to a bank account.
In publication, UNHCR Karolina Lindholm Billing, Ukraine’s representative, said, “UNHCR has been involved with the IT sector for many years and has played an important role in helping us deliver aid quickly, as speed is critical in humanitarian operations.”
Before the start of the month, Particia Blockchain Foundation held a “hackathon” in collaboration with the International Red Cross. The aim of the event was to determine how the Particia network could be used to improve the effectiveness of the Red Cross’s humanitarian aid payments.
While the digital currency market has had a rough couple of months due to events such as the collapse of FTX last month and the indictment of former CEO Sam Bankman-Fried, the UN bailout offers a concrete example of how cryptocurrencies can be positioned. Use in the real world.
In the months since Russia invaded Ukraine, digital currencies have played an important role in channeling aid money to displaced people and the Ukrainian government.
Crypto plays an important role in times of crisis
Already, cryptocurrency has played a significant role in the ongoing fight. In the early days of the conflict, the government received nearly $100 million in crypto contributions to fund operations, according to government sources in March.
The UN will launch its digital currency assistance program in three major cities of Ukraine: Kyiv, Vinnytsia and Lviv. After a six-month trial, it will be expanded to the country’s needy people and Ukrainian refugees in 2023, officials said.
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Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine, said:
“For running away from the Ukrainians […] This pilot project, which provides humanitarian aid using a digital wallet, will act as a potential lifeline for survival.
The Star Development Foundation Stellar is a non-profit organization created in 2014 with the aim of helping the growth and development of the open source network.
Stellar has collaborated with Latin America’s largest cryptocurrency exchange, Mercado Bitcoin, to launch a project exploring the potential uses of a digital currency issued by a central bank (CBDC).