Technology and Science06 July, 20262 min read
UNDP Signs With Stellar Development Foundation To Roll Out Blockchain Payments Across Haiti, Syria, Kenya
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UNDP expands Stellar partnership to roll out blockchain payments after pilots in five countries. Wider rollout expands blockchain payments across UNDP development and humanitarian programs.
UNDP scales Stellar payments
The United Nations Development Programme (UNDP) has signed a new agreement with the Stellar Development Foundation to move from blockchain pilots to a wider rollout of blockchain-based payments across development and humanitarian programs. UNDP said the effort builds on 16 months of testing in Haiti, Syria, Kenya, Guatemala and The Gambia, with additional work reported in Colombia and Papua New Guinea.
In Syria, UNDP cited a Cash for Work program where payments recorded onchain reportedly reduced distribution costs from 10% to 2%. UNDP also said a pilot in Haiti continued processing payments during a cellular network outage, addressing an issue that often disrupts delivery where connectivity is unreliable.
Process for country offices
UNDP said the next phase will focus on creating a repeatable process that country offices can apply, rather than treating blockchain payments as a one-off trial. 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 launched a Blockchain Advisory Group at the Proof of Talk conference in Paris, France to guide how it leverages blockchain across development programming. Beyond digital payments, UNDP said the advisory group will examine how blockchain could support digital public infrastructure and help improve public-sector systems.
Stablecoins and access stakes
The expanded UNDP-Stellar push arrives as stablecoins gain traction in remittance markets, with UNDP’s announcement framed as part of modernizing cross-border payments in emerging markets. Former UN under-secretary-general Vera Songwe told the World Economic Forum annual meeting in January that stablecoins are becoming “more important than aid” in some developing economies because they provide access to digital financial services where traditional banking remains out of reach.
Songwe also said, “650 million people don’t have access to a bank account in Africa,” and added that “With a smartphone, you have access to stablecoins, so you can save in a currency that is not exposed to fluctuations of inflation and making you poor.” UNDP’s expanded partnership also points to operational challenges it acknowledged, including “the volatility of digital currencies” and “the need for digital literacy among recipients,” while saying it is working with local governments and financial authorities.