- UNHCR and Stellar Development Foundation(SDF) announced the launch of a pilot, first-of-its-kind, blockchain/crypto payment solution.
- When the Ukrainian refugees choose to convert their digital assets into fiat currency, it’s relatively simple. Any global MoneyGram location will provide the necessary means to convert USDC into fiat currency.
- Oleksandr Bornyakov stated that the fundamental elements of blockchain technology have allowed UNHCR and the Ukraine government to scale humanitarian efforts.
2022 is marked with different highs and lows for the crypto ecosystem and the 4th Industrial Revolution. Different organizations have embraced blockchain technology, providing more accessible payment systems, but the polar opposite has also occurred. Wars have ragged on crypto crashes and even the downfall of various upcoming organizations. As a result, there are numerous victims, although we’ll only focus on a particular set in this article. The Ukraine- Russia war has raged on without clear sight of its ending, and many innocent casualties have suffered. So much so that the United Nations High Commissioner for Refugees or UNHCR has partnered with Stellar, a well-known crypto exchange platform, to offer Ukrainian Refugees Cash aid via a crypto payment system that distributes USDC.
UNHCR collaboration with Stellar
What started as mere speculation soon became a reality; at the beginning of the year, there were rumours of a said World War III. At first, it was mere stories and antics trying to share with citizens, but soon enough, the payers of war came knocking on the world. Russia declared its intent to invade Ukraine, which soon became a reality.
This was an unexpected move for everyone, even for the UNHCR, as Ukrainian refugees fled the country in millions to avoid the conflict. UNHCR has made several attempts to assist the said refugees, although the numbers keep pouring in as the war continues in a blaze of destruction. Through its journey of finding an optimum solution, UNHCR turned to blockchain technology for a solution and, as such, discovered an alternative way to assist all Ukrainian Refugees through a crypto payment system.Also, Read Ukraine prohibits the purchase of bitcoins using the national currency.
UNHCR and Stellar Development Foundation(SDF) announced the launch of a pilot, first-of-its-kind, blockchain/crypto payment solution. This new invention would aid internally displaced persons and other war-affected people in Ukraine. It’s a crypto payments system that gives stablecoins to those who need them the most.
UNHCR will be the first o test this new Stellar-based aid distribution solution that will ensure the delivery of cash assistance directly into the hands of those struggling.
This collaboration has birthed a new system that can utilize blockchain technology to create a new crypto payment system.
UNHCR’s new crypto payment solution.
The new system will reach Ukraninan Refugees without the cumbersome processes traditional financial services usually offer. In addition, blockchain technology will prevent money laundering and fraud between the reserves and the refugees.
The plot phase of the project focuses on Ukraine, although it can still expand worldwide. To ensure that refugees acquire this privilege, UNHCR confirms eligibility and distributes assistance in Circle Internet Finance’s USDC.
A stablecoin was the more likely choice since it is pegged to the US dollar and is unaffected by the recent crypto crash. The recipient will require to install and acquire a Vibrant digital wallet. Its certain functionality and user-friendly ness will be quickly adopted. In addition, Ukrainian refugees can travel out of the country and still receive the crypto payment solution.
When the Ukrainian refugees choose to convert their digital assets into fiat currency, it’s relatively simple. Any global MoneyGram location will provide the necessary means to convert USDC into fiat currency. In Ukraine alone, there are at least 4500 MoneyGram locations in Ukraine.
According to Karoline Lindholm Billing, UNHCR Representative to Ukraine, the country Is one of the global technology leaders. For years the UNHCR has collaborated with the different tech sectors in Ukraine, and it has significantly aided the US in several activities. This has significantly smoothened the process of humanitarian action for the country.
Why did UNHCR shift to Blockchain technology for aid?
Blockchain technology has proven versatile and adaptable to the current technological world. The program is piloted in three different cities, Kyiv, Lviv and Vinnytsia and will slowly expand to other towns. The decentralized nature of blockchain technology and Stellar Ingenuity allows Ukraine to receive the aid it needs without any hectic procedures.
Also, Read Stellar cryptocurrency providing banking, cross border payment services to the African crypto market
The use of this blockchain technology also complements UNHCR’s goal. It intends to expand further the systematic and rapid use of crypto payment solutions or Cash-Based Interventions. In 2016, UNHCR issued its first Policy on Cash-Based Interventions. Its first attempt was fruitful as the organization delivered $5 billion cash to assist 35 million people in 100 countries. Blockchain technology made distribution much simpler. Its secure nature secures the integrity of every single transaction. As such, no third party will generally have access to the funds set aside for Ukraine citizens.
The Deputy Minister of Digital Transformation of Ukraine on IT industry development Oleksandr Bornyakov, agreed with this directive. He stated that the fundamental elements of blockchain technology have allowed UNHCR and the Ukraine government to scale humanitarian efforts. Stellar has offered means that were once impossible feats. With the current war raging on, many Ukraninans are refugees in different countries. The pilot project will serve as a lifeline for all seeking shelter elsewhere.
In addition, Stellar and its blockchain technology allow UNHCR to be more transparent and accountable. This generates a level of trust not just with the Ukrainian Refugees but also with the world. It shows that the UNHCR is trying to make a difference today.