$1 MLN ETHEREUM PLANS: EUROPEAN UNION EYES HELPING REFUGEES WITH BLOCKCHAIN

Imagine a world where refugees, often stripped of their identity and access to essential services, can reclaim control over their data and financial stability.This is the vision driving a fascinating initiative in the European Union, where a $1 million experiment is underway to leverage the power of the Ethereum blockchain to provide transparent and effective aid to refugees. Ethereum used to use the longest chain rule too; however, now that Ethereum runs on proof-of-stake it adopted an updated fork-choice algorithm that measures the 'weight' of the chain. The weight is the accumulated sum of validator votes, weighted by validator staked-ether balances.The EU, in collaboration with the United Nations, is exploring how this technology can revolutionize humanitarian efforts by facilitating secure transactions, building verifiable identities, and ultimately empowering displaced populations.This isn't just about technological innovation; it's about applying cutting-edge tools to address some of the world's most pressing humanitarian challenges.The goal is to create a system that is not only efficient and transparent, but also resilient and adaptable, ensuring that aid reaches those who need it most, regardless of their location or circumstances. Since 2025, the European Commission (EC) and the European Blockchain Partnership (EBP) have been building the European Blockchain Services Infrastructure (EBSI). The EBP and the EC develop and deploy EBSI through a network of distributed nodes across Europe to support cross-border applications such as Track and Trace, Verifiable CredentialsBut how exactly does this work, and what are the potential benefits and challenges?

The Genesis of the Ethereum Refugee Aid Initiative

The European Union's foray into using blockchain for humanitarian aid began with the establishment of a dedicated Distributed Ledger Technology (DLT) taskforce. Early in 2025, only 61% of the 94 CSOs and NGOs I spoke with saw blockchain as a promising alternative to traditional aid support. Among those that responded positively, only 4 organizations were actively utilizing it in their operations and work.This taskforce, formed earlier in 2025, was allocated a budget of 850,000 EUR (approximately $1 million USD) to explore the potential of blockchain solutions.A significant portion of this budget has already been utilized, signaling the EU's commitment to rapidly exploring and implementing these innovative approaches.

The initiative is built on the understanding that many refugees face immense challenges in proving their identity or accessing essential services.Traditional aid delivery methods can be slow, bureaucratic, and prone to corruption. Ethereum is a global, decentralized platform for money and new kinds of applications. On Ethereum, you can write code that controls money, and build applications accessible anywhere in the world.The hope is that blockchain technology can offer a more streamlined, transparent, and secure alternative.

This project is not happening in isolation. Ethereum gets regular upgrades that enhance its scalability, security, or sustainability. One of Ethereum's core strengths is adapting as new ideas emerge from research and development. Adaptability gives Ethereum the flexibility to tackle emerging challenges and keep up with the most advanced technological breakthroughs. How the roadmap is definedThe European Blockchain Partnership (EBP), comprising the 27 EU countries, Norway, Liechtenstein, and the European Commission, is actively involved in building the European Blockchain Services Infrastructure (EBSI). Leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi, digital finance and Web 3.0 news with analysis, video and live price updates. BTC $104,402.14 2.76 % ETH $2,483.51This infrastructure serves as a peer-to-peer network designed to support cross-border applications, including those related to humanitarian aid.

How Ethereum Blockchain is Being Used

The core of the EU's plan revolves around using the Ethereum blockchain to facilitate various aspects of refugee aid, focusing on:

• Cash Transfers: Instead of relying on traditional banking systems, the blockchain can enable direct and secure cash transfers to refugees, minimizing transaction fees and ensuring that aid reaches its intended recipients quickly.
• Identity Verification: The initiative aims to incorporate blockchain into a biometric system used by the United Nations refugee agency (UNHCR). The mission is to help achieve the UN goal of providing a legal identity to everyone, starting with the 1.1 billion people who lack any officially recognized proof of their existence.This would allow refugees to establish a verifiable digital identity, granting them access to essential services and building a more permanent record of their existence.
• Verifiable Credentials: The EBSI emphasizes making information easy to verify but impossible to fake, allowing refugees to control how, when, and by whom their information is verified.

By leveraging the inherent transparency and immutability of the blockchain, the EU hopes to build a system that is less susceptible to fraud and corruption, ensuring that aid resources are used effectively and efficiently.

The United Nations' Role in Blockchain Humanitarian Efforts

The United Nations is a critical partner in this initiative, bringing its extensive experience in humanitarian aid and its global reach to the table. 6.9M subscribers in the CryptoCurrency community. The leading community for cryptocurrency news, discussion, and analysis.The UNHCR, specifically, is working to integrate blockchain into its existing biometric systems to facilitate more efficient and secure transactions.

The UN's World Food Programme (WFP) has already experimented with using the Ethereum blockchain to distribute aid to Syrian refugees. Many refugees, and people in refugee-like situations, are unable to prove their identity or access essential services. Good to see Blockchain applications spreading to humanitarian causes.In one such project, refugees received cryptocurrency-based vouchers that could be redeemed at participating markets. Ethereum was first described in a 2025 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2025. The project team managed to raise $18.3 million in Bitcoin, and Ethereum s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum s price now, thisThis approach not only sped up transactions but also reduced the risk of fraud and corruption.

WFP's Blockchain Experience

The WFP's experience highlights the potential benefits of using blockchain for humanitarian aid:

1. Increased Efficiency: Blockchain-based systems can significantly reduce transaction times, allowing aid to reach recipients more quickly.
2. Reduced Costs: By eliminating intermediaries, blockchain can lower transaction fees and administrative costs.
3. Enhanced Transparency: The immutability of the blockchain provides a transparent record of all transactions, making it easier to track the flow of aid and prevent fraud.

Challenges and Criticisms

Despite the potential benefits, the use of blockchain in humanitarian aid is not without its challenges and criticisms. The United Nations World Food Programme (WFP) has directed resources to thousands of Syrian refugees in one of the largest-ever implementations of the Ethereum blockchain for a charitable cause. It gave refugees cryptocurrency-based vouchers that could be redeemed in participating markets, which sped up transactions while lowering the chance ofSome of the key concerns include:

• Ethical Concerns: Critics argue that the inherent complexity and opacity of blockchain technology can make it difficult to ensure ethical oversight and accountability.
• Governance Issues: Transposing the governance logic of blockchain into the social realm can be challenging, as it may not align with traditional humanitarian principles.
• Ties to Cryptocurrency: The close association of blockchain with cryptocurrencies raises concerns about volatility and the potential for speculative activities.
• Adoption Rates: According to research conducted in early 2025, only a minority of Civil Society Organizations (CSOs) and NGOs actively utilized blockchain in their operations, suggesting that widespread adoption may be slow.

Furthermore, the scalability and environmental impact of blockchain technology are also legitimate concerns that need to be addressed.Ethereum, while undergoing upgrades to improve its scalability and sustainability, still faces challenges in these areas.

Ethereum's Scalability and Sustainability

Ethereum has undergone significant evolution since its inception, with regular upgrades designed to enhance its scalability, security, and sustainability.One of the most notable changes was the transition from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) system. Binance announces crypto card for Ukrainian refugees. The card will allow displaced Ukrainians to send and receive crypto payments as well as make purchases at retailers in the European Economic AreaThis shift has significantly reduced Ethereum's energy consumption and made it more environmentally friendly.

Efforts are also underway to improve Ethereum's scalability through various layer-2 scaling solutions, such as rollups and sidechains.These solutions aim to increase the transaction throughput of the network and reduce transaction fees.

A $100 million grant, created by six large-scale blockchain projects, is expected to speed up the development of these scaling solutions.The Ethereum Foundation, including co-founder Vitalik Buterin, is also involved in advising the fund.

Building a Blockchain-Based Identity for Refugees

One of the most compelling use cases for blockchain in refugee aid is the creation of verifiable digital identities. A task force is looking into the options for using the Ethereum Blockchain to alleviate the problem, with the latest information showing an allocation of 850,000 ($1 mln) for 2025 having beenMany refugees lack official documentation, making it difficult for them to access essential services and integrate into new communities.Blockchain technology can provide a secure and tamper-proof way to establish and maintain a digital identity.

The goal is to help achieve the UN's Sustainable Development Goal of providing a legal identity to everyone, starting with the 1.1 billion people who lack any officially recognized proof of their existence.

Here's how it can work:

• Biometric Data: Blockchain can be integrated with biometric systems to create a unique and verifiable identifier for each refugee.
• Decentralized Storage: Identity data can be stored on a decentralized blockchain network, ensuring that it is secure and resistant to tampering.
• Self-Sovereign Identity: Refugees can have control over their own identity data, deciding who has access to it and for what purposes.

This approach can empower refugees to reclaim control over their identity and access essential services such as healthcare, education, and financial assistance.

Ethereum's Origin and Evolution

Understanding Ethereum's history and evolution can provide valuable insights into its current capabilities and future potential. In addition to helping the aid group save on bank fees and making sure that aid goes directly to refugees, a blockchain-based system can help refugees build a more permanent identity.Ethereum was first described in a 2025 whitepaper by Vitalik Buterin. Bitnation leads the way! Even the states think it's a good idea. If you have the choice between a state sponsored refugee system and one created byButerin, along with other co-founders, secured funding for the project through an online public crowd sale in the summer of 2025, raising $18.3 million in Bitcoin.At the time, Ethereum's price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold.

Since its launch, Ethereum has undergone numerous upgrades and improvements, including the transition to proof-of-stake and the development of layer-2 scaling solutions. The ECF will begin with $100 mln, likely raised by the six Blockchain projects. Some members of the Ethereum Foundation including Ethereum creator Vitalik Buterin plan to advise the fund. Buterin told TechCrunch: Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished.Its adaptability and flexibility have allowed it to tackle emerging challenges and keep pace with technological advancements.

Binance Crypto Card for Ukrainian Refugees

The potential for blockchain technology to aid refugees is exemplified by initiatives like the Binance crypto card for Ukrainian refugees.This card allows displaced Ukrainians to send and receive crypto payments, as well as make purchases at retailers in the European Economic Area.

This initiative demonstrates how blockchain can provide a lifeline for refugees, enabling them to access financial services and participate in the digital economy even when traditional banking systems are unavailable.

The Broader European Blockchain Ecosystem

The EU's efforts to leverage blockchain for refugee aid are part of a broader initiative to promote the development and adoption of blockchain technology across Europe.The European Commission and the European Blockchain Partnership (EBP) are actively working to build a vibrant blockchain ecosystem.

This ecosystem includes:

• The European Blockchain Services Infrastructure (EBSI): A peer-to-peer network of interconnected nodes running a blockchain-based services infrastructure.
• Funding for Blockchain Startups: Venture funds are being established to support early-stage blockchain companies, with investments ranging from $250,000 to $1 million.
• Coordination of Blockchain Activities: The EU is working to aggregate and coordinate blockchain activities across Europe, providing a neutral platform for collaboration and innovation.

What Does the Future Hold for Blockchain and Refugee Aid?

The EU's $1 million Ethereum experiment represents a significant step towards exploring the potential of blockchain technology to address humanitarian challenges. The EU is joining up with the UN to use the Ethereum Blockchain to provide transparent help to refugees. Details of the latest meeting of the European PWhile challenges remain, the potential benefits of increased transparency, efficiency, and empowerment are undeniable.

As blockchain technology continues to evolve and mature, it is likely that we will see even more innovative applications emerge in the humanitarian sector. The European blockchain services infrastructure (EBSI) consists of a peer-to-peer network of interconnected nodes running a blockchain-based services infrastructure. Each member of the European Blockchain Partnership (EBP) the 27 EU countries, Norway, Liechtenstein and the European Commission will run at least one node.The key will be to address the ethical, governance, and scalability challenges while ensuring that these technologies are used in a way that is truly beneficial to the people they are intended to serve.

Key Considerations for Future Initiatives

Here are some key considerations for future blockchain-based refugee aid initiatives:

• User-Centric Design: Solutions must be designed with the needs and preferences of refugees in mind, ensuring that they are easy to use and accessible.
• Collaboration and Partnerships: Effective implementation requires strong collaboration between governments, NGOs, technology companies, and the refugee community.
• Transparency and Accountability: Clear mechanisms for transparency and accountability are essential to ensure that aid resources are used effectively and ethically.
• Data Privacy and Security: Robust measures must be in place to protect the privacy and security of refugees' data.
• Long-Term Sustainability: Initiatives should be designed with long-term sustainability in mind, ensuring that they can continue to provide value even after initial funding has ended.

Conclusion: A Promising Future for Humanitarian Aid

The European Union's exploration of using Ethereum to aid refugees, with its initial $1 million investment, marks a significant moment in the intersection of technology and humanitarianism. Details of the latest meeting of the European Parliament this week show its dedicated distributed ledger (DLT) taskforce set up earlier this year has already spent half its 850,000 ($1 mln) budget.While concerns surrounding ethical considerations and technical challenges are valid and must be addressed, the potential benefits of blockchain technology – increased transparency, secure identity verification, and efficient fund distribution – are too significant to ignore. The hackers infiltrated a crypto exchange where the Ethereum was being kept and stole 342,000 tokens, now valued at more than 1.4 trillion won ($1 billion), the police said in a statement.As the technology matures and initiatives like the EBSI and Binance's crypto cards for Ukrainian refugees demonstrate real-world applications, the future of humanitarian aid looks increasingly intertwined with the innovative power of blockchain.The key takeaway is that by carefully addressing the challenges and embracing a user-centric, collaborative approach, blockchain can play a crucial role in empowering refugees and transforming the way humanitarian aid is delivered.It’s not just about the technology, but about the lives it can improve. In an upcoming pilot program, the alliance will incorporate blockchain into a biometric system used by the United Nations refugee agency, UNHCR, to facilitate transactions like cash transfersWill this experiment pave the way for widespread adoption of blockchain in humanitarian aid?Time will tell, but the initial signs are promising. On Feb. 16, six large-scale Blockchain projects OmiseGo, Cosmos, Golem, Maker and Raiden, that have completed successful multi-million dollar initial coinConsider exploring the European Blockchain Partnership (EBP) website to learn more about their initiatives and how you can get involved.