Stablecoins in Humanitarian Cash Transfers

Overview & Synopsis

Stablecoins in Humanitarian Cash Transfers explores how digital currencies can improve the delivery of cash assistance in fragile and conflict-affected settings. The report highlights key challenges in traditional transfers, including high costs, delays, and limited access, and examines two models of stablecoin use, via local partners and direct-to-recipient wallets. It finds that stablecoins can enhance cross-border efficiency and transparency, but do not eliminate costs and may shift risks and financial burdens to recipients. The study concludes that while stablecoins offer potential benefits, their effectiveness depends on infrastructure, regulatory context, and program design.