- Blockchain technology, utilized by the Stellar Development Foundation, facilitates efficient and immediate distribution of humanitarian aid on a global scale.
- Benefits of blockchain aid delivery include instant batch disbursement, accessibility, cost efficiency, stability, portability, global cash out, and increased transparency.
In a world where approximately one in 23 people require humanitarian aid (statistics from 2022), innovative solutions to aid delivery have never been more urgent. Enter blockchain technology, employed by the Stellar Development Foundation, promising near-instant, accessible, and transparent delivery of aid at an unparalleled scale. This novel approach has transformed the humanitarian landscape, demonstrating the real-world value of blockchain.
“Blockchain disbursements of cash assistance improve local delivery for aid organizations, give real-time funds access to recipients, and reassure donors that cash is distributed to recipients efficiently.”https://t.co/7G1I5u5I2z
— Tori Samples (@tori_samples) June 1, 2023
Blockchain’s efficiency manifests notably in the realm of instant batch disbursement. Humanitarian organizations, utilizing tools such as the Stellar Consensus Protocol and the Stellar Disbursement Platform, can distribute aid swiftly and at scale. In a crisis, where time equates to lives, the significance of such rapid response cannot be overstated.
A crucial feature of blockchain aid delivery is its accessibility. Funds are accessible via digital wallets directly from mobile devices, obviating the need for physical cash or traditional banking. This offers a lifeline to recipients in unstable environments, granting them control and access to funds in the most exigent circumstances.
Cost efficiency is a salient benefit offered by blockchain technology. Transactions processed on the Stellar blockchain cost less than 1 US cent for approximately 10,000 transactions, enabling humanitarian organizations to direct more funding to vital needs such as food, shelter, medicine, and education.
Stability and portability go hand in hand when it comes to blockchain aid. Recipients can protect their funds from local currency fluctuations by receiving them in stablecoins, like Circle’s USD Coin (USDC), which can always be redeemed 1:1 for US dollars. Additionally, blockchain allows recipients to safely transport and access funds as they navigate precarious situations, empowering them with choice and dignity.
Blockchain also allows for global cash outs. Humanitarian organizations can now deploy funds across the world almost instantly, providing recipients the choice to hold their funds as digital assets until they need them. With Stellar’s global network of off-ramps, such as Moneygram, recipients can access funds in their chosen local currency.
Finally, blockchain technology enhances transparency. The traceability of funds on a public ledger, combined with organization-level controls, brings a level of certainty to the aid delivery process and simplifies reporting requirements.
Embracing blockchain technology for aid disbursements isn’t just about efficiency, it’s about expanding financial access, restoring dignity, and improving lives through innovative technology.