UNDP expands Stellar blockchain payments after pilots

The United Nations Development Programme has signed an agreement with the Stellar Development Foundation to expand its use of blockchain-based payments after 16 months of pilot projects, UNDP reported Monday. Pilots ran in Haiti, Syria, Kenya, Guatemala and The Gambia, with additional projects in Colombia and Papua New Guinea.

Under the agreement, UNDP will create a common process for country offices to route payments on public blockchain infrastructure where appropriate. The next phase will set operational steps and technical standards for scaling blockchain payments across a wider set of programs.

UNDP reported the pilots produced measurable results. In a Syria Cash for Work program, recording payments onchain reduced distribution costs from 10% to 2%. In Haiti, a blockchain payment system continued processing transfers during a cellular network outage.

UNDP also launched a Blockchain Advisory Group at the Proof of Talk conference in Paris last month. The group will review use cases beyond payments, including digital public infrastructure and public systems, and advise UNDP staff on governance, risk mitigation and technical choices.

Stellar is a public ledger designed for fast cross-border transfers and stablecoin issuance. The Stellar Development Foundation supports development of the network and its ecosystem.

UNDP officials reported the agency will monitor costs, user access, regulatory compliance and operational benefits as it scales the approach. Country offices will follow the new policies and technical standards when routing payments on public blockchains.

Stablecoins and blockchain networks have been promoted for cross-border payments and remittances where many people lack access to traditional bank accounts. Firms have pursued partnerships and market entries in Africa and Latin America to support remittance corridors and local payments.

At the World Economic Forum, former UN Under-Secretary-General Vera Songwe told attendees: “650 million people don’t have access to a bank account in Africa.” She added that stablecoins can provide access to digital financial services and a way to save in a currency less exposed to inflation.