Crypto enters the battlefield of aid

With Gaza’s economy down 83%, Sudan’s aid value boosted by 40%, and Ukraine still below pre-war GDP, new systems are being tested under fire In war zones where cash is scarce and corruption risks run high, the open ledgers of blockchain are helping aid donors answer one critical question: Where did the money go?

From Gaza to Sudan to Ukraine, digital currencies are becoming a swift aid tool – overcoming broken systems to deliver essential support across borders.

Gaza – Aid without banks Since October 7, 2023, the Israel-Hamas war shrunk Gaza’s economy by 83% in 2024, with unemployment hitting 80%, Palestinian Central Bureau of Statistics reported.

In this timeframe, food prices have increased by 450%, leaving most Gazans severely food insecure amid infrastructure collapse, says a 2025 World Bank report.

With 90% of the population also displaced, “Tether (USDT) became a critical tool,” Konstantin Tserazov, a former Senior VP at Otkritie Bank, told The Crypto Radio.

Gaza Sky Geeks, a Mercy Corps initiative, collaborated with cryptocurrency platforms to equip young Gazan entrepreneurs with tools for innovation and job creation. “We aimed to raise blockchain awareness and inspire local tech talent,” Ismail Aziza, former Gaza Sky Geeks coordinator, told The Crypto Radio.

Aziza said cryptocurrency has become a vital fundraising tool for Gazans, especially amid war-related disruptions and ongoing cash shortages. However, “only a minority are familiar with cryptocurrency and how to manage wallets, and not all traders may be willing to adopt it,” he noted.

“In Gaza and Sudan, youth embrace crypto out of tech familiarity, but most still convert it to cash due to low trust, literacy, and connectivity,” Tserazov agreed.

Aziza also noted that “blockchain’s transparency can cut auditing efforts if used right.” “Donors want to track every penny, and blockchain makes this easy,” he said.

“Using just a wallet address on a blockchain explorer, anyone can track the movement of funds on an open ledger like Bitcoin’s,” Rume Ophi, Crypto Market Analyst and Blockchain Educator, told The Crypto Radio.

Sudan – Replacing the system CoalaPay uses blockchain wallets to enable verifiable donations in crisis zones. In Sudan, where civil war has crippled banks, they partnered with the Norwegian Refugee Council in 2024 to tackle banking delays, high fees, currency devaluation, and unreliable withdrawals – increasing aid value by 30–40%.

“These initiatives reveal blockchain’s transformative power in crisis zones, where speed, transparency, and resilience are paramount,” Tserazov said.

At CoalaPay, the team isn’t made up of typical tech founders. As CEO Melyn McKay explained, many are former aid workers who understand the practical hurdles – from confusing interfaces to staff with limited digital experience.

"The challenge with blockchain in the aid sector is that most builders don’t design with this market in mind," McKay told The Crypto Radio. "Humanitarian aid is different and it needs tools built with its operational and ethical considerations in mind."

She noted that communities adapt more quickly when mobile money is already familiar. "In many war zone areas, there are no ATMs or reliable currency exchanges. People in low-access environments are more motivated to adopt new financial tools than those with easier options."

Global crypto aid efforts

Despite 2.9% growth in 2024 after a 28.8% drop in 2022, war, infrastructure damage, and labor shortages also keep Ukraine’s GDP below pre-war levels, according to Interfax.

Ophi pointed to similar crypto use in Ukraine, especially during early war phases, when other systems broke down.

Populations struggling during crises are what motivated platforms to accept crypto as a form of aid. UNRWA USA partnered with The Giving Block to accept Bitcoin and Ethereum donations and over 40 other cryptocurrencies to help Palestinian refugees.

US-based charity Baitulmaal also accepts crypto donations to support people in Afghanistan, Bangladesh, Lebanon, Palestine, Syria, and Yemen.

Challenges in delivering aid Tserazov, reflecting on his time at Otkritie Bank, said the key hurdle in crisis zones was minimizing administrative costs that can drain vital aid.

“Our approach at Otkritie focused on efficiency and impact,” he noted.

According to the Better Business Bureau's Wise Giving Alliance, nonprofits should allocate at least 65% of their total expenses to program activities, ensuring that administrative and fundraising costs do not exceed 35% of total expenses.

Financial concerns are just one part of the problem. “Internet connection is also a challenge,” said Ophi, noting that in many conflict zones, connectivity is unreliable or unavailable.

Power outages add another layer of difficulty. “Infrastructure is another hurdle; war zones lack stable power,” Tserazov said. In Sudan, telecom blackouts in late 2024 left millions without access to banking or vital information.

But it’s not just about getting online – it’s about knowing what to do once you are. “Digital literacy is critical,” Ophi added. Without seeing the value of new tools, many communities fall back on traditional systems and miss the chance to bypass middlemen.

Workarounds and emerging tools To navigate these constraints, some aid groups are turning to alternative technologies. Ophi pointed to GSM-enabled blockchain solutions that allow transactions to occur without internet access.

Tserazov said others are working around connectivity breakdowns using SMS-based access and Push-to-Talk systems that rely on Wi-Fi Direct, Bluetooth, or mesh networks.

“Local aid workers in Sudan could use such systems to pay for food distribution, transferring crypto between wallets without internet reliance,” he said.

“As crypto philanthropy grows, the challenge is to deliver aid swiftly and securely while meeting strict global regulations to ensure funds reach those in greatest need,” he added.