Blockchain experiments in international aid are reaching a new stage. After several pilot projects carried out in different countries, UNDP believes that this technology can now support a wider range of humanitarian and development programs. The results obtained on the ground, particularly in Haiti and Syria, convinced the agency to expand the use of on-chain payments thanks to a new agreement with the Stellar Development Foundation. This development marks a concrete progression of blockchain in the operations carried out by the United Nations.
In brief
- UNDP is expanding the use of on-chain payments with Stellar after successful pilot projects in five countries.
- In Syria, blockchain has reduced payment distribution costs from 10% to 2%.
- In Haiti, payments continued despite a cellular network outage, demonstrating the resilience of the system.
- A blockchain advisory group will now support the deployment of this technology in UNDP programs.
- Stablecoins are gaining ground as a solution for international transfers and access to financial services in underbanked regions.
On-chain payments have demonstrated their effectiveness in five countries
After a long phase of experimentation, the United Nations Development Program has drawn positive results from its blockchain initiatives carried out in the field. This work, carried out over sixteen months in Haiti, Syria, Kenya, Guatemala and Gambia, led UNDP to sign a new agreement with the Stellar Development Foundation to expand the use of its blockchain infrastructure. At the same time, other initiatives are already in preparation in Colombia and Papua New Guinea. The goal now is to further integrate blockchain-based payments into field programs.
The tests delivered several concrete results. In Syria, a cash-for-work program recorded payments on a digital platform, reducing distribution costs from 10% to just 2%. In Haiti, a pilot project continued to operate despite a cellular network outage. These experiments show that blockchain infrastructures can maintain business continuity, even in environments where traditional networks struggle.
This initial feedback paves the way for wider deployment. Country offices will gradually have a process to use these solutions in more programs. This approach aims to strengthen the resilience of operations while reducing costs associated with payments to beneficiaries.
UNDP prepares wider deployment of blockchain
The UNDP considers that this first phase validates the interest of blockchain for its development missions. The agency now wants to put in place an operational framework so that its national offices can adopt this technology more easily. This development reflects a desire to go beyond simple experiments to integrate these tools into larger-scale programs.
Last month, UNDP also launched an advisory group dedicated to blockchain during the Proof of Talk conference organized in Paris. This initiative must support the organization's future directions in the use of this technology. The group's work will not be limited to digital payments, since it will also focus on digital public infrastructure and the improvement of public systems.
Through this strategy, UNDP intends to explore several uses of blockchain for development. Lessons learned from the pilot projects will serve as a basis for future deployments. The objective remains to adapt these solutions to local realities while ensuring consistent implementation in the organization's different offices.
Stablecoins gain importance in international transfers
The expansion of these initiatives is part of a broader dynamic around blockchain networks and stablecoins. These technologies are increasingly used to facilitate cross-border transfers, particularly in regions where access to banking services remains limited. They offer an alternative to making payments and transferring funds with more continuity.
This trend is also found in the private sector. Ripple recently took a stake in African fintech Flutterwave in order to promote the adoption of its stablecoin RLUSD and the XRP Ledger in Africa. Latin America also attracts players in the sector, who target several transfer corridors in Argentina, Bolivia, Colombia and Venezuela. These initiatives illustrate the growing interest in digital infrastructure in emerging markets.
Former UN Under-Secretary-General Vera Songwe estimated that ” stablecoins now go beyond just funds transfers “. According to her, they facilitate access to digital financial services in regions where traditional banking solutions remain poorly accessible. She recalls that “ in Africa, around 650 million people do not have a bank account “. According to his statements, a smartphone allows access to stablecoins, saving in a currency less exposed to inflation and strengthening financial inclusion.
UNDP now plans to build on lessons learned from its pilot projects to gradually mainstream these solutions into its programs, with the support of Stellar's blockchain infrastructure. If this new step confirms the results observed in Haiti, Syria and the other countries concerned, the use of this technology could take a more important place in the organization's humanitarian and development operations, in particular to secure and optimize payments to beneficiaries.
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