On July 6, the UN Development Programme (UNDP) announced a formal agreement with the Stellar Development Foundation to scale blockchain-based payments in aid programs, building on pilots in five countries. Over the past 16 months, UNDP conducted research and field tests in Haiti, Syria, Kenya, Guatemala, and The Gambia, with additional projects developed in Colombia and Papua New Guinea.
Syria cuts costs, Haiti keeps running offline
Results from the pilots are concrete. In Syria's "Cash for Work" program, distribution costs for blockchain-recorded payments dropped from 10% to 2%. In Haiti, the payment system continued functioning seamlessly even during mobile network outages. UNDP stated the next phase will focus on establishing operational processes so country offices can deploy blockchain payments across a wider range of programs.
Blockchain advisory group formed, exploring digital public infrastructure
Last month, UNDP launched a Blockchain Advisory Group at the Proof of Talk conference in Paris. The group's scope extends beyond payments to explore blockchain for digital public infrastructure (e.g., identity, land registries) and overall public system efficiency. UNDP is the UN's agency for poverty reduction, institution building, and sustainable development. The Stellar Development Foundation supports the Stellar network, a blockchain designed for cross-border payments and digital asset transfers.
Stablecoins gain ground in emerging markets; 650 million unbanked in Africa
UNDP's move reflects a broader push to modernize cross-border payments in emerging economies. Poor banking access and high remittance costs make stablecoins increasingly attractive in Latin America (Argentina, Bolivia, Colombia, Venezuela) and Africa. Ripple recently acquired a stake in African fintech Flutterwave to expand use of its RLUSD stablecoin and XRP Ledger. Former UN Under-Secretary-General Vera Songwe said at Davos that 650 million people in Africa lack a bank account, but those with smartphones can reach digital financial services via stablecoins. She argued stablecoins are becoming more important than aid in some developing countries because they enable financial inclusion for those excluded from traditional banking.