The Circle and Coinbase-created USDC stablecoin is backed by dollars and short-term U.S. The Office of the United Nations will soon use Treasury securities. Ukrainian refugees will receive aid from the United Nations High Commissioner for Refugees (UNHCR) via digital wallets that function on the Stellar network.
In accordance with a recent news release, the UNHCR has launched a scheme to use the Stellar blockchain to deliver USDC to Ukrainians impacted by Russia's invasion of the nation.
Using USDC on Stellar would make it easier for displaced people to get money and less likely for them to lose it or have it stolen while traveling. The UNHCR representative in Ukraine, Karolina Lindholm Billing, stated:
“Ukraine is a global lead in the development of technical solutions to increase access to social protection, including assistance for displaced people. Across the world, UNHCR has been collaborating for years with the tech sector, which has played a crucial role in helping us to renew to deliver assistance faster, as speed is of the essence in humanitarian action. It’s also essential to provide people with a range of options for receiving aid, as one size does not fit all.
Programs need to be designed with the people they are meant to serve at the centre. I am very pleased that UNHCR and the SDF have chosen Ukraine for this launch, and look forward to expanding it beyond this pilot, so it can benefit many thousands more people in need of assistance as a result of the war.”
Ukrainians can then take the money and swap it for dollars, euros, or other currencies through MoneyGram locations around the world. Ukraine has 4,500 such locations that can be used.
To receive money, users must download the Vibrant cryptocurrency wallet program. Through it, they will obtain USDC, which they can then exchange on their accounts. The idea was developed with the assistance of the Stellar Development Foundation.
A non-profit organization named the Stellar Development Foundation was created in 2014 to support the development and growth of the Stellar open-source network.
The initiative, which is currently being evaluated in Vinnytsia, Lviv, and Kyiv, was developed in collaboration with UNHCR. The initiative will eventually cover more ground.
The Ukrainian government started considerable use of cryptocurrencies at the beginning of this year. About $100 million in Bitcoin donations were made shortly after Russia's invasion started. To raise even more funds, it subsequently began a non-fungible token (NFT) collection.