On Thursday, the UN announced that it would start using cryptocurrencies to assist Internally Displaced Persons (IDPs) and other war-affected individuals in Ukraine. For the distribution of digital cash anywhere in the globe, the humanitarian project with cryptocurrency-based facilitation is a ‘first-of-its-kind blockchain payment solution.’
The USD Coin (USDC), a cryptocurrency that is pegged to the US dollar and is regarded as a stablecoin, will be distributed to displaced Ukrainians by the UN High Commissioner for Refugees (UNHCR).
Displaced people will get the transfer in their virtual wallet, called ‘Vibrant.’ The beneficiaries can then swap it for cash at around 4500 MoneyGram sites across the world, including those in war-torn Ukraine.
The project will be run by UNHCR in collaboration with the UN International Computing Centre (UNICC), the technology solutions provider of the United Nations.
As of present, the UN will distribute aid via USD coin cryptocurrency in Kyiv, Lviv, and Vinnytsia cities. It will then expand to other towns and cities in Ukraine.
The UN said that it has extensively tested the cryptocurrency aid solution over the last six months and is ‘expected to be expanded to reach more war-affected people inside Ukraine as well as refugees from Ukraine in early 2023,’ according to an official statement.