UNDP and Stellar expand blockchain payments for global aid

UNDP and Stellar will expand blockchain payments for global aid, aiming to standardize efficient and transparent digital payments after successful pilot programs.

The United Nations Development Programme (UNDP) has deepened its collaboration with the Stellar Development Foundation to make blockchain-based payments a standard tool for distributing global relief and development aid. This move follows 16 months of research and pilot projects in countries such as Haiti, Syria, Kenya, Guatemala, and the Gambia, with additional initiatives planned in Colombia and Papua New Guinea. The pilot programs demonstrated that blockchain payments can significantly reduce distribution costs, improve transparency, and maintain payment continuity even during infrastructure failures. For example, in Syria, a Cash for Work program saw costs drop from 10% to 2% using blockchain, while in Haiti, payments continued despite a cellular network outage. Under the new agreement, which runs through 2027, UNDP country offices will be able to integrate blockchain payments into their regular operations, supported by governance frameworks and operational guidelines. The initiative aims to make aid distribution more efficient, transparent, and resilient, particularly in regions with limited banking access.