Tech
UNHCR wins award for innovative use of blockchain solutions to provide cash to forcibly displaced people in Ukraine
GENEVA – Paris Blockchain Week 2023 today awarded UNHCR, the UN Refugee Agency, the “Best Impact Project Award” for a pilot project using blockchain technology to provide cash to people displaced or affected by the war in Ukraine.
This award recognizes projects that generate significant social impact using blockchain technology and recognizes UNHCR’s commitment to exploring innovative solutions to assist refugees and forcibly displaced people.
In December 2022, UNHCR, in partnership with the United Nations International Computing Centre (UNICC) and the Stellar Development Foundation (SDF), and with pro bono legal advice from Linklaters, successfully ran a small pilot project to provide cash assistance to a group of people displaced by the war in Ukraine. USD Coin by Circle Internet Financial (USDC) — a stablecoin where one USDC equals one US dollar. This money was transferred directly to the recipient’s digital wallet, which can be accessed via a smartphone.
Designed to be easy for recipients to use, this program allows them to convert this assistance into cash by withdrawing their funds in dollars, euros or local currency at any MoneyGram location globally, or by transferring the amount to a personal bank account. This support can then be used to cover basic needs such as rent, food, medical care and heating during the winter.
The small-scale project in Ukraine is the first of its kind and has the potential to be scaled up in the future to provide digital solutions for money disbursement in other contexts.
“The technology sector has a critical role to play in helping humanitarian agencies innovate to better deliver aid to those forced to flee,” said Kelly T. Clements, UNHCR Deputy High Commissioner. “It is crucial to invest further in expanding digital literacy and connectivity among displaced populations and in tailoring solutions to the needs of the most vulnerable and the context in which they will be implemented.”
As the number of people forced to flee and humanitarian crises rise around the world, UNHCR aims to harness new technologies to deliver aid to more people, faster and safer.
This blockchain initiative complements UNHCR’s commitment to further expand the provision of cash as a critical form of assistance, as it allows those displaced to prioritize their needs with dignity. Since 2016, when UNHCR issued its first Cash-Based Interventions Policy, the agency has provided nearly $5 billion in cash assistance to some 35 million people in 100 countries.
Notes
Link to the Paris event: https://www.parisblockchainweek.com/
Links to UNHCR’s work on cash-based interventions: https://www.unhcr.org/cash-based-interventions.html
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