Stellar is working with the International Rescue Committee (IRC) to provide assistance to Ukrainians using USD Coin (USDC). Partisia and the International Committee of the Red Cross (ICRC) are also developing a system of financial aid payments to victims of armed conflicts based on public blockchain networks.
The Stellar Development Foundation (SDF) joined forces with the International Rescue Committee (IRC) to test the Stellar Aid Assist project, which aims to use digital currencies to make aid payments to Ukrainian refugees.
The company teamed up with Circle Internet Financial, MoneyGram International, and Vibrant to achieve this goal. Payments are supposed to be made using USDC stablecoins, which are fully collateralized by Circle’s assets and can be promptly distributed via a Vibrant crypto wallet.
According to the SDF, payments in digital currencies will allow Ukrainian refugees to receive financial assistance regardless of the availability of a bank account and credit or debit cards. Stablecoins will be deposited into crypto wallets and can be converted into fiat anywhere in the world through MoneyGram offices.
David Miliband, President and CEO of the IRC, said that using blockchain for these kinds of payments could provide transaction transparency for the Committee and its sponsors. According to Denelle Dixon, CEO of the SDF, using digital currencies to help refugees will greatly speed up the process of getting necessary funds to those in need.
The Partisia Blockchain Foundation is also planning to use blockchain to help victims of armed conflicts. Together with the International Committee of the Red Cross (ICRC), they presented a prototype system based on public blockchain networks to make humanitarian payments to refugees. Stablecoins will also be used for transfers.
Vincent Graf Narbel, ICRC Head of Tech Hub Data Protection Office, argues that creating “humanitarian tokens” will allow access to these kinds of payments even for people who have lost any connection with the traditional financial system.
Blockchain technology has been used in humanitarian aid before. For example, the Building Blocks initiative of the World Food Program (WFP) has enabled various organizations to cooperate and exchange data quickly. The program has been running since 2017.
Despite the military conflict in the country, Ukraine has become a leader in the crypto adoption rate this year. Local staff of CoinsPaid Media previously told about the state of the cryptocurrency market in Ukraine.
