# Deliver cash assistance in a war zone within minutes

> The UN Refugee Agency UNHCR disburses cash assistance to internally displaced people in Ukraine as USDC stablecoin over the Stellar network, paid directly into a smartphone wallet. Recipients then redeem the funds in US dollars, euros or local currency at MoneyGram locations, making them independent of functioning local bank branches. The pilot launched in December 2022 in Kyiv, Lviv and Vinnytsia and was later extended to Argentina and Afghanistan.

**Sector:** Tertiary sector · **Industry:** Non-profit organisations · **Organisation:** UNHCR · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/unhcr-bargeldhilfe-kriegsgebiet-minuten-auszahlen

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

The UN Refugee Agency UNHCR pays cash assistance to internally displaced persons in Ukraine as digital dollars directly to their smartphones. In active war zones, bank branch networks fail and people move between cities, so traditional payout methods can take days and tie recipients to one location. Through the public Stellar network, aid reaches the wallet within seconds, and redemption in local currency is carried out via the existing local network of a commercial payout partner.

UNHCR launched the pilot in December 2022 together with the Stellar Development Foundation in the Ukrainian cities of Kyiv, Lviv and Vinnytsia, where many people had fled after their homes were destroyed. Payouts are made in the regulated stablecoin USDC from Circle Internet Financial directly into the Vibrant wallet app, which runs on an ordinary smartphone. Afterwards, recipients can exchange the funds into US dollars, euros or local currency and withdraw them at MoneyGram locations worldwide, enabling them to remain operational even after relocating or fleeing across borders. Because every payout is traceable on a public network, donor organisations can verify fund usage without requiring additional reporting loops. According to UNHCR's own 2024 report, around 4.6 million US dollars have been paid out this way, mainly in Ukraine and Argentina, and the approach has been extended to returning refugees in Afghanistan. The solution was awarded the Impact Award at the Paris Blockchain Week in 2023.

## Benefits

- A transferable model for cross-border payments without reliable local banking partners.
- Reduced dependence on individual correspondent banks in crisis markets.
- Location-independent access to aid via one’s own smartphone.
- Redemption in US dollars, euros or local currency of one’s choice.
- Payouts reach recipients in minutes instead of days.
- Aid remains available even when local bank branch networks have failed.
- Fund usage is fully traceable for donor organisations.
- Recipients can still access funds after relocating or fleeing.
- Less logistical effort for physical payout points.
- Reliable payout data for reporting to donors.

## Challenges

- Dependence on a single stablecoin issuer and a single payout partner remains a concentration risk.
- The approach requires a functioning smartphone with internet connection, which is not consistently available in a war zone.
- The use of a stablecoin must be legally and regulatorily clarified in each country of operation.
- Beneficiaries need support in handling wallets, as loss of access makes the aid unreachable.
- Compliance functions must newly map sanctions and anti-money laundering checks on a public network.

## Technology foundation

The solution uses the public Stellar network and the regulated stablecoin USDC from Circle, enabling payouts in seconds with low network fees. A public network is sensible here because redemption is to be carried out via a worldwide commercial payout network and recipients must not be tied to a closed infrastructure.

## Sources

- [How UNHCR Distributes Cash Assistance Through Stellar Aid Assist](https://stellar.org/case-studies/unhcr)
- [UNHCR launches pilot Cash-Based Intervention Using Blockchain Technology for Humanitarian Payments](https://www.unhcr.org/ua/en/news/unhcr-launches-pilot-cash-based-intervention-using-blockchain-technology-humanitarian-payments)
- [UNHCR wins award for innovative use of blockchain solutions to provide cash to forcibly displaced in Ukraine](https://www.unhcr.org/news/press-releases/unhcr-wins-award-innovative-use-blockchain-solutions-provide-cash-forcibly)