The United Nations Development Programme (UNDP) has inked a deal with the Stellar Development Foundation to expand the use of blockchain-based payments across its development programs, marking a significant step toward integrating public blockchain infrastructure into humanitarian and development work. This agreement comes on the heels of pilot projects in five countries, highlighting the potential for blockchain to play a more visible role in aid distribution and economic development efforts.
Pilots pave the way for broader implementation
On Monday, UNDP announced that over the past 16 months it has conducted research and pilot studies in Haiti, Syria, Kenya, Guatemala, and the Gambia, and has developed additional projects in Colombia and Papua New Guinea. The agency stated that its new phase will focus on creating operational processes enabling country offices to utilize blockchain payments for a wider range of programs.
UNDP functions within the United Nations system as an agency dedicated to fighting poverty, building institutional capacity, and advancing sustainable development. The Stellar Development Foundation, meanwhile, is a nonprofit supporting the Stellar network, a blockchain designed for cross-border payments and digital asset transfers.
UNDP announced that in its next phase, operational processes will be established so that country offices can deploy blockchain-based payments across broader initiatives.
Syrian and Haitian pilots yield measurable results
The pilot programs delivered tangible outcomes. In Syria, the “Cash for Work” program saw distribution costs for blockchain-recorded payments fall from 10% to 2%. In Haiti, the payment system continued to function seamlessly even during interruptions to the mobile network.
Such results have fueled greater interest in blockchain-based payment networks, particularly in areas where access to traditional banking is limited. Stablecoin-backed networks are gaining traction thanks to their potential to cut costs and increase access for cross-border payments and remittance transfers.
UNDP launches blockchain advisory group
At the Proof of Talk conference in Paris last month, UNDP launched a Blockchain Advisory Group to shape how the organization leverages blockchain technology in its development programs. The group’s work will extend beyond digital payments, exploring how blockchain can support digital public infrastructure and enhance public systems overall.
Emerging markets drive real-world adoption
UNDP’s move reflects a broader trend toward modernizing cross-border payment systems in emerging markets. Poor banking access and high remittance costs are making stablecoins increasingly attractive, especially in Latin American countries like Argentina, Bolivia, Colombia, and Venezuela, which stand out as busy payment corridors.
A similar trend is visible in Africa. Ripple recently acquired a stake in Africa-based fintech company Flutterwave as part of its strategy to expand use of RLUSD stablecoin and XRP Ledger on the continent. In the region, remittances remain a critical source of household income.
Former UN Under-Secretary-General Vera Songwe noted that 650 million people in Africa lack access to a bank account, yet those with smartphones can reach digital financial services via stablecoins.
Speaking at the World Economic Forum’s annual meeting in January, Songwe emphasized that digital payments are having an impact in some developing economies that goes beyond remittances. She argued that stablecoins are becoming even more important than aid in certain countries because they enable digital financial services for populations excluded from the traditional banking sector.
