UNHCR launches pilot cash-based intervention using blockchain technology for humanitarian payments to people displaced and affected by war in Ukraine – Ukraine
UNHCR has launched a first-of-its-kind integrated blockchain payment solution powered by the Stellar network to reach people in need with speed, agility and accountability
15 December 2022
Geneva, 15 December 2022
Stellar Development Foundation (SDF): San Francisco, CA
UNHCR, the UN Refugee Agency, and Stellar Development Foundation (SDF), the non-profit organization supporting the growth and development of Stellar’s blockchain network, today announced the launch of a first-of-its-kind blockchain payment solution for digital cash distribution to internally displaced persons (IDPs) and other war-affected people in Ukraine.
UNHCR, in partnership with the United Nations International Computing Center (UNICC), the UN’s technology solutions provider, is among the first to pilot the new Stellar-based aid disbursement solution, which ensures the delivery of cash aid directly into the hands of those being assisted quickly, efficiently and securely with full value transfer traceability and accountability.
The pilot phase of the project is designed specifically for Ukraine, but can be adapted worldwide. UNHCR verifies eligibility and distributes assistance in Circle Internet Financial’s USD Coin (USDC) – a stable coin where one USDC equals one US Dollar – directly into the recipient’s Vibrant digital wallet which they can download to a smartphone. This provides a secure place to store and transport funds in USDC, a stable store of value, allowing people to travel within the country or cross borders without having to carry cash.
When recipients choose to convert to cash, whether it’s dollars, euros or local currency, they can withdraw their money at any global MoneyGram location, including over 4,500 MoneyGram locations in Ukraine.
The program is being piloted in Kyiv, Lviv and Vinnytsia and will be expanded to other cities in Ukraine. The money will provide humanitarian aid to some of those most affected and vulnerable due to the war, to help them meet basic needs such as accommodation, food, medical care and heating in winter. The solution has been thoroughly tested over the past six months and is expected to be expanded to reach more war-affected people inside Ukraine as well as refugees from Ukraine in early 2023.
This blockchain initiative complements UNHCR’s goal of further expanding the systematic and rapid use of cash-based interventions. Since 2016, when UNHCR issued its first policy on cash-based interventions, UNHCR has delivered almost US$5 billion in cash assistance to around 35 million people in 100 countries. UNHCR is committed to further expanding the provision of cash, which is normally the preferred method of assistance for people who are forcibly displaced, as it gives them the freedom and dignity to decide for themselves how to prioritize the assistance provided, based on their personal needs.
“Ukraine is a global leader in the development of technical solutions to increase access to social protection, including assistance to displaced persons. Across the world, UNHCR has partnered for years with the technology sector, which has played a critical role in helping us innovate to deliver assistance faster, as speed is of the essence in humanitarian efforts. It is also important to give people a variety of options for receiving help, as one size does not fit all. Programs must be designed with the people they are intended to serve in the center. I am very happy that UNHCR and the SDF have chosen Ukraine for this launch, and look forward to expanding it beyond this pilot, so that it can benefit many thousands more people who need help as a result of the war, said Karolina Lindholm Billing, UNHCR representative in Ukraine.
“SDF, together with UNHCR, is realizing the promise of blockchain and pioneering a new future for the delivery of billions of dollars in aid disbursed annually. Using Stellar, we help get funds into the hands of those who need them – and do so quickly, transparently and without the need for bank accounts or credit or debit cards. We are proud to work with UNHCR to deploy blockchain innovations that will play a role in helping those in crisis,” said Denelle Dixon, Executive Director and CEO of the Stellar Development Foundation.
“Today we can see how blockchain technology allows us to scale humanitarian efforts in a way that was not possible before. For fleeing Ukrainians, and primarily for those whose banks are inaccessible, this pilot project that provides humanitarian aid using a digital wallet , serve as a possible lifeline for survival. The project itself is a living example of how blockchain has the potential to transform and revolutionize the way humanitarian funds are allocated. The use of blockchain technology enables humanitarian organizations such as UNHCR to be more transparent and accountable and ensure that the most vulnerable people have access to funds given in their name. In this way, humanitarian efforts around the world will be strengthened in an unprecedented way. The Ministry of Digital Transformation of Ukraine is grateful to the SDF and UNHCR for standing with the people of Ukraine and do this in such an efficient and modern way,” said Deputy Minister for Digital Transformation of Ukraine o m development of the IT industry Oleksandr Bornyakov.
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Media contacts
UNHCR:
In Ukraine: Saorlaith Ni Bhroin, [email protected]; +380 50 489 4485
Situation in Ukraine: Louise Donovan, [email protected]; +41 792173058
Stellar Development Foundation: Lauren Thorbjornsen, [email protected]
About UNHCR
UNHCR, the United Nations refugee agency, protects people forced to flee their homes due to war, conflict and persecution. Working in over 130 countries, we protect millions of people by responding with life-saving support, safeguarding basic human rights and helping them recover and build a better future.
For more information about UNHCR, visit www.unhcr.org/about-us.html
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About Stellar
Stellar is a decentralized, fast, scalable and uniquely sustainable network for financial products and services. It is both a cross-currency transaction system and a platform for issuing digital assets, designed to connect the world’s financial infrastructure. Financial institutions worldwide issue assets and settle payments on the Stellar network, which has grown to over 7 million accounts. For more information, visit stellar.org.
About the Stellar Development Foundation
The Stellar Development Foundation (SDF) is a non-profit organization that supports the development and growth of Stellar, an open source network that connects the world’s financial infrastructure. Founded in 2014, the foundation helps maintain Stellar’s code base, supports the technical and business communities that build on the network, and acts as a voice for regulators and institutions. The foundation seeks to create equitable access to the global financial system, using the Stellar network to unlock the world’s financial potential through blockchain technology. For more information, visit stellar.org/foundation.
