By Scott Galbraith
An interesting development that has been happening in the crypto world is the use of cryptocurrencies to quickly deliver funds to those in need.
The wave of Ukrainian refugees created a problem for the UN as humanitarian aid had to be distributed and delivered quickly, which is often hard to do using traditional financial instruments. Cryptocurrencies are perfect for the job.
UNHCR has been quite vocal about the usefulness of various cryptocurrencies, namely Bitcoin and Ethereum, in providing immediate relief to refugees coming to European countries.
Crypto is proving to be the best tool for quick transactions
When it comes to providing help to those who need it the most and need it quickly, crypto is the best choice. It removes many aspects of bookkeeping, provides instant delivery of funds, and allows keeping track of used funds efficiently.
These qualities were immediately recognized as useful by the UNHCR as it focused on distributing aid among people who often come to their refugees without any money to spare.
In Humanitarian action, speed plays the biggest role, but the diversity of methods of delivery is also quite important.
Karolina Lindholm Billiong, the representative of the UNHCR in Ukraine, believes that there is nothing more important than acting quickly despite some minor downsides created by the market situation.
Some experts think that providing help in Bitcoin is a risky choice due to severe market volatility and the current bear market. The UNHCR started using the method in Summer.
Since then, the market has lost close to 60% of its value. Nevertheless, the UNHCR is accounting for market volatility when providing humanitarian aid to refugees.
An unexpected but important use case
When it comes to cryptocurrency, many skeptics forget that it has enormous utility. For international transactions, there is nothing better, faster, or more transparent than crypto.
Humanitarian organizations and many nations under economic sanctions were the first to recognize it. The global community is starting to understand the true value of cryptocurrencies, but we still have a long road ahead of us.
Cases like the one with UNHCR providing financial humanitarian relief using crypto are a great example of how Bitcoin and Ethereum can be used efficiently.