As part of its humanitarian assistance program for conflict-affected people in Ukraine, International Rescue Committee is using blockchain technology to facilitate the cash-cased distribution of assistance.
Another Real World Use Case
In a recent announcement, the International Rescue Committee is joining forces with the Stellar Development Foundation in order to pilot a digital cash disbursement system that combines Circle’s USDC, Vibrant, and MoneyGram International and enables the organization to reach people in need as quickly as possible, with the highest level of accountability on the blockchain.
Using a digital dollar backed by fully reserved assets, such as the USD Coin (USDC) issued by Circle Internet Financial, Stellar Aid Assist enhances the IRC’s existing cash assistance efforts by making them available almost instantly to a client’s smartphone wallet – in this case, Vibrant – which is a digital wallet backed by fully reserved assets.
As a result, people are able to receive digital dollars remotely, store them as stores of value to hedge against inflation, as well as transport them across borders in a more secure manner rather than providing them with physical cash that they may find difficult to store and to carry.
Furthermore, it enables Ukrainian clients to receive their cash assistance regardless of whether they have a bank account, a credit or debit card, as their digital dollars can be stored on their phones, converted into real currency almost anywhere in the world via MoneyGram’s 400K+ agent locations in 175 countries.
As a result of the use of the Stellar blockchain, this innovative solution has the potential to be more efficient, flexible, and faster than traditional cash-based inventions. Moreover, the traceability of funds will be of greater benefit to IRC and its donors since it can improve the speed, efficiency, and transparency of the system.
This project is expected to grow a global ecosystem of digital wallets and cash on/off ramps that will serve different contexts and geographies, laying the groundwork for future financial innovations for cash assistance and donation programs in the future.
A recent initiative by Stellar to assist citizens who have been affected by war shows that cryptocurrencies have another real-world application. As a whole, blockchain is doing a good job of showing that it will be a good alternative to traditional financial systems in times when they do not work. At the end of the day, it’s a pity that the potential that the cryptocurrency industry can hold is being demonstrated in wars.