UN To Transfer Crypto In Financial Aid For Ukranians

The crypto industry has faced many challenges in 2022 due to macros. Recent events such as the FTX crash and its contagion have further exacerbated the situation, but amid all this, crypto continues to find more utility in Ukraine. The most recent development indicates that blockchain technology is far from over and could be an alternative resort when traditional channels fail.

The war between Russia and Ukraine left millions of people stranded and the United Nations has sought out means to send help. Reports have revealed that the United Nations High Commissioner for Refugees (UNHCR) has partnered with Stellar Blockchain to send money to displaced persons in Ukraine.

Stellar Development Foundation (SDF) shared this update via an official press release. The firm said it would work on instant disbursement of the United Nations (UN) aid through the Stellar Aid Assist pilot project.

Stellar is partnering with payment platforms such as MoneyGram International, Circle, and Vibrant, a wallet app, to achieve this goal.

How Will Stellar Crypto Rescue Fund Project Work?

The UNHCR intends to use USDC stablecoins to send funds to Ukrainian refugees and internally displaced persons in the rescue project. According to the firm’s website, Stellar Aid Assist is already being used to send financial assistance via USDC directly to qualified Ukrainians.

Eligible Ukrainians can register with a participating relief organization to receive aid through the Vibrant Wallet. They can then exchange the stablecoins for cash at any participating MoneyGram location.

With the Ukrainian banking infrastructure in bad shape because of the war, many people cannot send or receive funds. Through Stellar and Vibrant, the United Nations plans to send money faster and at a lesser cost than traditional channels. Ukrainians can receive financial aid instantly without a bank account or credit card.

In December alone, Stellar and the International Rescue Committee (IRC) reached 33 out of the 100 people they plan to reach before the end of 2022. IRC is an NGO that helps victims of political, religious, and ethnic crises.

Stellar Aid Assist Provides Safe Means To Donate Rescue Money

UNHCR representative to Ukraine, Karolina Lindholm Billing, commented on the Stellar Assist project. In her speech, Billing noted that the project could benefit thousands of people who require assistance during the war. Moreover, she expressed enthusiasm that the United Nations (UN) and IRC chose Ukraine to test the Stellar Aid Assist project.

David Miliband, the president and CEO of the IRC, also commented on the pilot of the Stellar Aid Assist project. He said the partnership with Stellar has offered them new ways to send cash assistance to Ukrainians using blockchain technology.