- Stellar’s partnership with IRC introduces rapid, transparent, and secure cash assistance.
- Digital wallets empowered recipients in Ukraine, bridging gaps in traditional banking services.
- Stellar Aid Assist pioneers a template for future humanitarian efforts worldwide.
StellarOrg, a renowned blockchain platform, took to the X platform to highlight the significance of swift and efficient aid delivery during times of crisis. In Ukraine, the Stellar Development Foundation (SDF) cooperated with the International Rescue Committee (IRC), and they implemented an innovative cash assistance program. This pioneering program, called Stellar Aid Assist, marks an outstanding stage in humanitarian relief by providing immediate, cost-effective, and transparent cash assistance to people caught up in catastrophes.
The Stellar Aid Assist initiative builds upon IRC’s existing cash assistance efforts by harnessing a digital dollar backed by fully reserved assets, specifically the USD Coin (USDC). This digital currency is distributed almost instantly to recipients through a secure digital wallet on their smartphones.
This strategy not only helps in quickly providing financial assistance but also gives beneficiaries an option to keep and protect their money from inflation. Additionally, it facilitates safe cross-border transactions without the need for physical cash storage and transportation, which are often dangerous due to safety concerns in conflict zones.
Moreover, one of the key advantages of this system is its inclusivity, as it enables individuals in Ukraine to receive cash assistance even if they lack access to traditional banking services, credit or debit cards. Beneficiaries can store their funds in a digital wallet on their mobile devices and convert the digital dollars into local currency at MoneyGram’s extensive network of over 400,000 agent locations in 175 countries.
This advanced approach takes advantage of the features and compatibilities offered by Stellar blockchain to increase speed, efficiency, and flexibility applicable in classic cash projects alongside full transparency on funds management. It also has the potential to set up the template that will pave the way for future innovations in cash aid and donor programs at a global level, creating digital wallets as well as on/off ramps suitable to various settings and geographical regions.
David Miliband, President and CEO of the International Rescue Committee (IRC), underscored the organization’s commitment to addressing novel approaches to dealing with people facing humanitarian emergencies. He emphasized the importance of this partnership with Stellar Development Foundation, which allowed clients in Ukraine to receive cash assistance, including payment from USD, ensuring their recovery after the war.
The partnership between IRC and SDF showcases a dedication to enhancing the efficiency and effectiveness of distributing humanitarian aid. In an era marked by a record number of displaced individuals worldwide and decreasing funding for humanitarian efforts, this creative collaboration provides optimism and a roadmap toward a fairer and more accessible aid distribution framework.
Stellar has always been at the forefront in aiding in times of crisis. Earlier, they partnered with the UN Refugee Agency to launch a digital cash payment system powered by the Stellar network to assist Ukrainian refugees.
