Through a new blockchain-based aid program, UNHCR is transferring USDC, a stable currency pegged to the US dollar, into Vibrant digital wallets of eligible recipients, which operate on the Stellar blockchain.
Aid recipients can then receive the funds in USD, EUR or local currency at one of the 4500 MoneyGram locations in Ukraine.
Holding cryptocurrency funds on one’s mobile phone helps anyone to move easily over long distances without worrying about how to convert their cash from one national currency to another.
Where USDC will help
Funds in USDC will be distributed to Ukrainian refugees most affected by the war to help cover issues such as rent, food, medical care and heating during the winter.
“UNHCR has been working for years with the technology sector, which has played a critical role in helping us to innovate to deliver aid faster, as speed is essential when dealing with humanitarian action,” said UNHCR spokesperson in Ukraine, Caroline Lindholm Billing.
Case of actual use of cryptocurrency
Despite a difficult few months for cryptocurrencies, including the collapse of FTX and the charges filed against its former CEO, Sam Bankman-Fried, the UN assistance program illustrates a real case of cryptocurrency use.
Months after Russia’s special operation in Ukraine, cryptocurrencies have played a huge role in funneling funds to refugees and the Ukrainian government.
100 million dollars in cryptocurrency donations
In March, Alex Bornyakov, Ukraine’s deputy minister at the Ministry of Digital Transformation, said the country had raised nearly $100 million in cryptocurrency donations.
Related: This is where Ukraine spent $54 million in crypto donations
Mykhailo Fedorov, Ukraine’s deputy minister of digital transformation, released a series of NFTs called “META HISTORY: Museum of War”, aimed at raising money to help the country’s defense.
The UNHCR program, in partnership with the Stellar Development Foundation, is being piloted in the Ukrainian cities of Kiev, Lviv and Vinnytsia, and will be expanded to other cities and regions.
The UN said in a statement that the initial phase of the project is designed specifically for Ukraine, but could be extended to other parts of the world.
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