Stellar (XLM) Shines in Crisis Response: Solutions Beyond Borders For The $650B Remittance Market
Stellar Lumens is offering a solution with aid delivery worldwide for those faced with various forms of crisis.
Through Stellar Aid Assist, the project is able to disburse financial aid, in a timely, transparent, easy, and affordable way across the globe.
The Stellar Foundation is taking a keen focus in humanitarian efforts. The nonprofit organization creating equitable access to the global financial system through the Stellar blockchain aims to offer solutions that deliver humanitarian assistance.
In 2022, the United Nations High Commissioner for Refugees (UNHCR) launched a revolutionary integrated blockchain payment solution powered by the Stellar network. Utilizing the blockchain technology offered by Stellar, the new solution is able to reach people in need with speed, efficiency, and accountability.
The new system was successfully deployed in Ukraine, helping distribute humanitarian aid to those affected by the ongoing war. The UNHCR was able to distribute the USDC stablecoin which was distributed in a timely fashion, was easily accounted for and recipients were able to use it to travel and spend locally or across the border.
This is made possible by the partnership between Stellar and MoneyGram which allows cryptocurrency holders to convert their digital assets into cash on MoneyGram outlets. Recipients can access the cash in their local currency, ensuring they can meet their basic needs promptly. The new solution while specifically designed for Ukraine, is capable of being deployed anywhere in the world.
A recent post written by the President and CEO of the International Rescue Committee (IRC), David Miliband, and published on the Stellar blog has highlighted the challenges facing humanitarian delivery. Millions of users are facing various forms of crisis and the post notes that more than 110 million people are currently displaced.
Some of the challenges facing the world are climate change, political and economic instability, Covid-19, and global conflict.
1/6 More than 110 million people are displaced globally, facing crises from climate, COVID, and conflicts like Ukraine. It’s time for reflection and action.
Let’s talk barriers and solutions pic.twitter.com/mNcLgbZobX
— Stellar (@StellarOrg) September 14, 2023
The Stellar blockchain has identified these challenges faced by organizations looking to deliver humanitarian aid. Blockchain technology as demonstrated in the Ukraine solution program, ensures that aid is fairly, promptly, and transparently disbursed. This ensures that the affected people are able to meet their immediate needs which could include food, healthcare, shelter, or evacuation. In addition, aid workers do not need to risk their lives delivering aid, since the disbursements can be accessed remotely.
Furthermore, working through the Stellar blockchain aids in collecting data that humanitarian organizations such as the IRC, can use to shift from short-term, fragmented solutions to using data to design long-term, impactful programs.
In 2022, global remittances to low- and middle-income countries exceeded $650 billion, surpassing foreign direct investments. This is a clear demonstration that this is a growing market. As organizations attune technology to real-world contexts and the realities of recipients and donors, Stellar revolutionary technology will drive rapid digital change.
Filed under: Bitcoin - @ September 15, 2023 12:11 pm