Circle Drives Digital Transformation in Humanitarian Aid with USDC

robot
Abstract generation in progress

Circle’s latest initiative demonstrates a commitment to strengthening global payment systems, especially in contexts where speed and efficiency are critical. In a strategic collaboration with the United Nations, the organization has allocated funds to modernize digital finance infrastructure supporting worldwide humanitarian aid.

This project aims to revolutionize how resources are distributed internationally, enabling approximately $38 billion in annual assistance to reach those in need more quickly and cost-effectively.

Modernization of Cross-Border Transfers

The UN Treasury Digital Solutions Center will work on optimizing cross-border fund transfers, a key aspect in responding to humanitarian crises. According to data from NS3.AI, this grant will help accelerate processes that traditionally require multiple intermediaries and incur significant costs.

Digital transactions with stablecoins like USDC offer a direct alternative to traditional banking systems. With a current market value of $70.06 billion and minimal volatility (maintaining its peg to $1.00), USDC has proven to be reliable for capital movements in sensitive contexts.

USDC in Humanitarian Response: Lessons from Ukraine

Circle has already applied this technology in real crisis situations. The previous collaboration with the UN Refugee Agency included using USDC to channel assistance to Ukraine, demonstrating that stablecoins work effectively when traditional financial infrastructures are compromised.

This precedent validates the approach of expanding the use of digital finance in other emergency contexts. The speed of settlement—where transactions are completed in minutes instead of days—is critical for organizations that need to deliver resources urgently.

Financial Potential for One Billion in Assistance

The potential impact of this initiative is significant. If adoption of stablecoin payments is scaled, savings in fees and waiting times could free up additional resources to be directly allocated to humanitarian aid. Every percentage point saved in transaction costs means millions that can be effectively invested.

This is why both Circle and the United Nations see digital finance as a transformative tool. It’s not just about adopting new technology, but redirecting funds that are currently lost in intermediaries toward the ultimate goal: substantially and measurably enhancing humanitarian aid.

USDC0.04%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)