Aid. Crypto. Stablecoins. Why Humanitarians Must Pay Attention.
I’ve been asked many times: Is crypto really relevant for humanitarian work? And when I talk about it, I often see the same reaction—people assume it’s all volatility, hype, and high-risk speculation. To be fair, much of it is.
But there’s one part of this digital ecosystem that humanitarian and development actors need to understand. It’s not about speculation—it’s about stable, digital value transfer that is already reaching some of the most fragile places on earth and delivering real results.
That digital asset is the stablecoin.
Over the past two years, I’ve seen this approach evolve—from small pilot projects to on-the-ground impact in war zones, displacement settings, and underserved communities. I’ve sat in strategic conversations where stablecoins were seriously considered as a way to finance and deliver aid. I’ve also watched organizations—especially those building digitalization and AI-native models—begin to treat stablecoins as a serious enabler.
But before diving in, let me be clear: this isn’t an endorsement, and it’s definitely not investment advice. It’s a briefing—a grounded look at what’s happening, what’s working, and why it matters.
Because the rise of stablecoins reminds me of when we first debated using hawala networks or mobile money in humanitarian contexts. We called them too informal, too risky—until we had no other choice, and they became the only systems that worked.
Of course, stablecoins won’t fix everything. But they’re fast becoming part of the solution. And it’s time the humanitarian sector caught up.
So what’s behind this quiet shift? It’s not hype—it’s a response to real bottlenecks. When traditional rails are too slow, too expensive, or simply unavailable, stablecoins offer something rare: speed without chaos, reach without middlemen, and trust without friction.
What Are Stablecoins?
A stablecoin is a type of digital currency designed to maintain a fixed value by being pegged to traditional currencies like the U.S. dollar or euro. Unlike volatile cryptocurrencies such as Bitcoin or meme coins like DOGE, stablecoins are built for reliability and stability—making them especially useful in fragile contexts where local currencies are unstable or formal banking systems are inaccessible.
Think of it like mobile money—but faster, borderless, and built with transparency at its core. With just a smartphone—or increasingly, even a basic feature phone—people can receive funds directly into a digital wallet, and often at a fraction of the cost of traditional transfers.
Why Stablecoins Matter
At their core, stablecoins do three things remarkably well: preserve value, move fast, and transfer at low cost. That makes them uniquely effective—not as replacements for traditional finance, but as practical tools when conventional systems fall short.
They blend the reach of mobile money with the speed and precision of blockchain technology. Linked to stable currencies like the U.S. dollar, these digital assets offer something rare in crisis settings: predictability in unpredictable environments. That combination unlocks powerful advantages—especially in emergencies, systemic breakdowns, or fragile economic conditions where traditional financial tools fall short.
Speed. On networks, stablecoin transactions can settle in under six seconds—an enormous leap compared to the days or weeks traditional transfers often require. In humanitarian crises, where delays can cost lives, that kind of speed is essential.
Cost. Transaction fees are often negligible—sometimes as low as $0.01 for 10,000 operations. This dramatically reduces overhead, allowing more resources to reach communities in need rather than being lost to intermediaries. While costs may vary by network or regulatory setting, the potential for savings is significant.
Transparency. Most stablecoin transactions—especially those on public blockchains—are recorded on immutable ledgers, meaning they can be traced from origin to destination. This level of transparency can build trust among donors, regulators, and communities by enhancing auditability and reducing the risk of fraud. However, traceability depends on the blockchain used and how the wallet infrastructure is set up.
Stability. Unlike Bitcoin or Ethereum, stablecoins maintain a steady value, typically pegged 1:1 to fiat currencies. This makes them resilient tools in places where inflation, devaluation, or conflict destabilizes local economies.
Security and Scalability. Cryptographic safeguards reduce the risk of tampering, while blockchain networks are evolving to support thousands of transactions per second—enabling rapid scale-up in emergencies.
Access. Access. Stablecoins don’t require a bank account. With just a mobile phone, recipients can receive and manage funds. This opens doors in regions where banking services are limited or outright inaccessible—especially when basic connectivity and digital literacy are in place. And I’ve lived this first-hand. I was able to acquire and use stablecoins before I ever managed to open a bank account—because my nationality meant I faced extra layers of compliance and “Know Your Customer” checks. Opening a bank account—something many take for granted—can be an uphill battle if you’re from the Global South. But stablecoins? They were quick, borderless, and available when the formal system wasn’t.
This isn’t about crypto taking over humanitarian aid. It’s about using the parts that actually work—like stablecoins—carefully and responsibly, to build faster, fairer, and more transparent systems for the people who need them most.
And with central banks around the world—from the U.S. to the EU—now exploring stablecoins through new laws and pilot programs, this approach is quickly gaining global legitimacy.
Barriers That Can’t Be Ignored
In crypto conversations, some are optimistic. Others are deeply skeptical. I’m realistic. While I see the opportunities, I also recognize that the challenges around stablecoins are real—and they matter.
- Regulatory Chaos: As of 2024, 60% of low-income countries have no legal frameworks for stablecoin use (IMF). India and China restrict it. Even the U.S. 2025 legislation, while a landmark, is only one piece. Enforcement, clarity, and infrastructure still lag.
- Connectivity Gaps: 73% of people in low-income countries lack reliable internet (ITU). And while SMS-compatible wallets are on the horizon, they’re not ready at scale.
- Digital Literacy: In multiple pilots, users struggled to manage wallets without training. For stablecoins to work, local onboarding is non-negotiable.
- Donor Skepticism: EU policy briefs still flag crypto as risky. AML concerns, volatility fears, and reputational risk keep many funders cautious—even when the data shows results.
- Banking Pushback: Some banks fear that stablecoins could sideline traditional financial services or disrupt their business models, especially in fragile economies where they already face operational strain.
- Environmental Impact: Energy-intensive blockchains behind some stablecoins contribute to high carbon emissions, raising sustainability concerns for eco-conscious aid operations.
- Then there are also cybersecurity risks—from wallet hacks to metadata exposure in aid settings—and geopolitical concerns, such as USD-pegged stablecoins reinforcing dollar dominance.
The good news from my perspective? These are operational and policy hurdles—not fatal flaws. And they’re solvable with smart design and strong partnerships.
The Way Forward: Strategic, Contextual, and Grounded
My main advice? Educate yourself. Keep an eye on this space. Stablecoins aren’t just a passing trend—they’re part of a much broader shift in how value moves across borders, systems, and crises. Whether you’re skeptical or curious, now is the time to understand the tools shaping tomorrow’s humanitarian delivery.
The question is no longer whether stablecoins work—it’s where, how, and for whom.
They’re not a one-size-fits-all solution, and they shouldn’t be. Just as mobile money was contextually scaled in East Africa, and hawala systems were pragmatically adopted across Afghanistan, Syria, and Somalia, stablecoins deserve the same intentional exploration. Their use must be rooted in local realities—regulatory, infrastructural, and cultural—not driven by hype or urgency.
For organizations ready to pilot or scale stablecoins as part of their broader aid toolkit, the path forward must be strategic and community-informed. Here’s how:
1. Expand Off-Ramps and Partner for Scale. Work with fintech partners to increase cash-out points, especially in rural and fragile settings. Stablecoin solutions should be built through joint ownership. The UNHCR–Circle–Stellar model is instructive, enabling bulk transfers at speed and scale. But scaling responsibly means stress-testing systems in low-connectivity zones, safeguarding data, and ensuring operational reliability.
2. Engage with Regulators. Don’t wait for policy—help shape it. Align pilots with local legal frameworks to address concerns like anti-money laundering (AML) and consumer protection. The U.S. GENIUS Act provides a promising model, but global inconsistencies demand proactive engagement to balance innovation with institutional trust.
3. Design with Communities. Adoption begins with trust. Some organizations that piloted it succeeded in countries like Syria and Kenya by involving local leaders and tailoring digital wallets to low-literacy users. Co-creation ensures tools are accessible, interfaces are intuitive, and programs don’t inadvertently exclude those most in need.
4. Learn from What’s Already Working. We’re not starting from scratch. Across the humanitarian sector, stablecoins are already being tested—quietly but seriously. I don’t represent or speak for these organizations, but here’s what’s unfolding: CARE International used them for COVID-recovery vouchers; the World Food Programme deployed blockchain food vouchers in refugee camps; the International Rescue Committee piloted direct transfers to unbanked refugees in Ukraine; UNICEF and Rumsan used stablecoins to deliver aid in disconnected areas; GiveDirectly leveraged blockchain for cash assistance; Coala Pay is trialing programmable donor-to-recipient transfers; AIDONIC enables real-time tracking of aid flows; Mercy Corps cut transfer times and reached more households in Syria; and GIZ and UOSSM used stablecoins to pay hospital staff.
These aren’t future concepts—they’re already happening. And while each initiative has its limitations, together they signal a deeper shift: the move toward faster, leaner, more accountable—and more accessible—financial delivery systems.
Final Thought: This Isn’t a Trend—It’s a Turning Point
Over $212 billion circulates through humanitarian systems each year—not just as funding, but as lifelines, trust, and human dignity.
I’m not in the business of trends, so I’m not asking you to jump and buy crypto or stablecoins. But I am asking you to look at the larger ecosystem—because whether we like it or not, the global economy is seriously considering stablecoins. If humanitarian systems don’t evolve to meet the speed, scale, and accountability that modern crises demand, we risk becoming irrelevant.
The biggest mistake? Overestimating the risks and underestimating the opportunities. Fear holds back more positive change in this sector than failure does.
And remember: the best programming or the most beautiful product doesn’t always win. Distribution does so focus on how solutions land in people’s hands.
Stablecoins won’t fix everything. But they can fix something—and in crisis response, something often means everything.
Let’s not wait for the next disaster to modernize our financial tools. Let’s root innovation in values, and values in action. Not for hype. Not for headlines. But for every person still waiting—on the other side of broken systems, broken timelines, and broken promises.
Ali Al Mokdad
