UN to Utilize Blockchain for Refugee Assistance

The United Nations High Commissioner for Refugees (UNHCR) is embarking on a groundbreaking journey into the world of blockchain technology. At a panel discussion organized by Decentral House in Switzerland, Carmen Hett, the head of UNHCR's Finance and Administration Department, revealed that the humanitarian organization is developing a blockchain-based system for identity verification. This move is supported by international agencies such as the International Telecommunication Union (ITU) and the World Trade Organization (WTO), both of which are exploring blockchain integration into their operations.

The primary goal of UNHCR's blockchain project is to confirm the identities of refugees receiving financial assistance through digital wallets while safeguarding their data. This initiative aims to deliver aid within minutes, eliminating transaction fees and granting refugees direct control over their funds, thus enhancing their digital literacy. With transparent transaction records, the UN can effectively track operations and prevent fraud.

UNHCR intends to employ stablecoins like USDC, popular among traders, as they can be easily converted into fiat currencies. With over 114 million refugees worldwide, leveraging blockchain technology will significantly facilitate the organization's mission. UNHCR has already tested its blockchain-based solution in Ukraine, earning recognition with the Best Impact Project Award during the 2023 Paris Blockchain Week.

Carmen Hett emphasized the importance of adopting innovative solutions for providing more effective assistance to those forced to flee their homes due to conflicts. She stated, "Humanitarian organizations must embrace innovation to aid the most vulnerable populations."

This initiative reflects UNHCR's ongoing commitment to using blockchain as a tool against corruption, building on its 2020 collaboration with LTO Network to develop a blockchain platform for land rights registration.