Stellar and Algorand Blockchain Networks Power Humanitarian Aid Efforts
A recent report by CGAP highlights the use of Stellar and Algorand blockchain networks in global humanitarian aid programs. The report, linked to the World Bank, shows that these networks enable faster and cheaper cross-border aid payments, overcoming traditional banking hurdles such as high fees and slow settlements.
Examples include USDC distributions in Sudan and Ukraine via Stellar, which facilitate more efficient aid delivery to recipients in fragile markets. Additionally, local stablecoin transfers on Algorand have been used in Afghanistan, further demonstrating the potential of these blockchain networks for humanitarian cash transfers.
The report, however, cautions that stablecoins do not eliminate all costs or risks associated with cross-border transactions. Local currency conversion and compliance remain significant challenges for recipients in fragile markets.