UN Uses Stellar Blockchain to Send War-Affected Ukrainians USDC Stablecoins
by Arthur · December 15, 2022
The United Nations High Commissioner for Refugees (UNHCR), a UN agency mandated to assist and protect refugees, is launching a blockchain solution to distribute cash to Ukrainians affected by the ongoing Russian invasion.
The program is being piloted first in Kyiv, Lviv and Vinnytsia, the three Ukrainian cities many people fled to after their homes were destroyed by Russian missile attacks or sought shelter for their families, with UNHCR responsible for verifying the beneficiaries’ eligibility and the allocation of the aid.
To participate, users must download Vibrant, a Stellar-based non-custodial mobile digital wallet that provides a secure place to store and transport funds in USDC, a popular dollar-pegged stablecoin.
Recipients can then choose to convert the received USDC into US dollars, euros or local currency and withdraw their money at hundreds of thousands of MoneyGram locations around the world.
The pilot is in collaboration with the United Nations International Computing Center (UNICC), which acts as a technical solution provider, and will leverage Stellar Aid Assist, a Stellar-based product that allows users to send money instantly and securely on the blockchain.
“For fleeing Ukrainians, and primarily for those whose banks are inaccessible, this pilot project providing humanitarian aid using a digital wallet will serve as a possible lifeline for survival. The project itself is a living example of how blockchain has potential to transform and revolutionize the way humanitarian funds are allocated,” Deputy Minister of Digital Transformation of Ukraine Oleksandr Bornyakov said in a statement.
Cash handouts help the war-affected people meet basic needs such as accommodation, food, medical care and heating in winter, with UNHCR confirming eligibility and distributing aid.
According to Stellar Development Foundation Executive Director Denelle Dixon, this way the funds get into the hands of those who need them “quickly, transparently and without the need for bank accounts or credit or debit cards.”
Last year, the Stellar Development Foundation (SDF) also announced that the Stellar blockchain will be used to pilot an electronic version of the hryvnia, the national currency of 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,” Dixon said in a statement.
