During a panel discussion organized by Decentral House in Switzerland, UNHCR’s Director of Finance and Administration, Carmen Hett, shared that the humanitarian agency has initiated the development of a blockchain-based system for personal identification. Distinguished international organizations such as the International Telecommunication Union (ITU) and the World Trade Organization (WTO) also participated in the conference, exchanging ideas on how to integrate blockchain into their operational procedures.
The primary objective of UNHCR’s project is to authenticate the identities of refugees who are receiving financial aid through digital wallets, safeguard user data, and ensure immediate receipt of assistance without any additional fees. Additionally, blockchain technology will empower refugees to have direct control over their funds, enhancing their digital literacy. By maintaining a record of online transactions, the UN will be able to transparently track these transactions, thus preventing any potential instances of fraud.
UNHCR plans to utilize USDC stablecoins, which are widely accepted among traders and can be easily exchanged for fiat currency. With over 114 million refugees worldwide, leveraging blockchain will significantly facilitate the UN’s operational tasks, according to Hett. The organization has already successfully tested its blockchain solution in Ukraine, and their exceptional project was acknowledged with the prestigious Best Impact Project Award during Paris Blockchain Week 2023.
“Humanitarian agencies must innovate in order to effectively assist individuals displaced by conflicts. It is crucial to adapt blockchain to cater to the needs of the most vulnerable populations,” stated Carmen Hett.
Several years ago, the UN recognized blockchain as a valuable tool in combating corruption. In 2020, in collaboration with the LTO Network, the UN introduced a blockchain-based platform for the registration of land rights.