Author: Aryn Baker, The New York Times
Compiled by: Felix, PANews
In a bustling currency exchange in northwestern Syria, a 46-year-old farmer clutched a plastic card as if it were her lifeline. She had never heard of cryptocurrency, but this card contained $500 worth of crypto, helping her restart her farm after nearly 14 years of civil war.
As the teller confirmed the amount and withdrew cash for Hala Mahmoud Almahmoud's account, the farmer smiled with relief and paused to express her gratitude. She asked where such technology came from.
The answer surprised her: Afghanistan.
Many might not imagine that this blockchain-based innovation in cash transfers originates from a country known for Taliban rule and skepticism toward the internet. Yet, in this nearly isolated nation, an Afghan startup is developing tools aimed at transforming how humanitarian aid is delivered in conflict-ravaged countries.
"We have faced these challenges ourselves, so we know how to create effective solutions," said Zakia Hussain, a 26-year-old programmer at the startup HesabPay, which designed the technology behind the card held by Ms. Almahmoud.
Hala Mahmoud Almahmoud outside her home near Latamina, Syria. She received $500 in cryptocurrency aid to help reopen her farm.
The UN Refugee Agency (UNHCR) is one of the early supporters of the platform. The agency uses it to support over 86,000 families in Afghanistan, making it one of the largest public blockchain aid projects globally. Mercy Corps, the charitable organization that donated to Ms. Almahmoud, partnered with HesabPay to extend aid to Syria and is currently developing projects for Sudan and Haiti.
In Syria, accessing funds from abroad is highly complex. Cash is scarce, international banks avoid the region, and remittance companies like Western Union charge fees as high as 10%. HesabPay enables organizations like Mercy Corps to bypass these obstacles.
Sanzar Kakar, an Afghan-American entrepreneur and founder of HesabPay, previously ran Afghanistan's largest payroll processing company. However, the 2021 U.S. withdrawal from Afghanistan and the Taliban's return to power triggered a financial collapse. Sanctions halted international remittances, and the central bank was paralyzed.
To address the country's growing financial insecurity, Kakar turned to blockchain technology. He created HesabPay (meaning "account" in the local language), a mobile-based application that allows instant transfers from one digital wallet to another, bypassing banks and the Taliban government. He stated that the Afghan government has granted his company a formal financial operating license.
The aid organization Mercy Corps, which donated funds, partnered with HesabPay to extend the platform's services to Syria.
Today, the platform has over 650,000 wallets in Afghanistan, with about 50,000 actively used, transferring approximately $60 million worth of Afghan afghani stablecoins (stablecoins pegged to the Afghan currency) monthly.
Since February 2025, the UN has used HesabPay to distribute nearly $25 million to returning Afghans through 80,000 digital wallets, according to Carmen Hett, Treasurer of Corporate Finance at UNHCR: "This helps reduce transaction fees, shorten waiting times, and enhance traceability, real-time monitoring, and accountability."
Ric Shreves, a decentralized finance solutions expert and president of the Decentralized Cooperation Foundation, said it is not surprising that organizations like Mercy Corps and the UN are turning to blockchain-based fund transfers for aid. For such organizations, "this approach offers almost all advantages compared to traditional aid methods."
However, he noted that risks remain, especially when payment systems are based on local currency stablecoins, as in Afghanistan. (In Syria, HesabPay wallets are backed by U.S. dollars, a more stable option.) Just as wallets can be shut down for interacting with sanctioned individuals, they could theoretically be closed by a central bank for political reasons.
Using blockchain technology makes it easier for Mercy Corps to send funds to Syria, where cash is scarce and international banks typically do not operate.
Ric Shreves stated, "When we provide people with non-physical transaction methods, it also means these transactions can potentially be blocked through technical means." He added that digital currency is clearly safer than cash, but it still cannot be hidden under a mattress like cash.
In recent years, aid organizations have increasingly opted for cash assistance, viewing it as a quick and dignified form of aid. However, cash assistance has a flaw: it is difficult to track where the money goes. Donors want to see their contributions reach those in need. Since President Trump significantly cut U.S. foreign aid early last year, organizations like Mercy Corps face greater pressure to demonstrate the effectiveness and integrity of their aid.
This is where blockchain comes into play, creating a digital record that accurately tracks how much money was sent, to whom, and where it went. Scott Onder, Chief Investment Officer at Mercy Corps, said this combination of speed and accountability "might help regain the trust of those who have doubts about the effectiveness of aid."
HesabPay also includes additional security measures, such as real-time dashboards to track wallet activity and cross-check it with international compliance databases. The company stated that the system is designed to detect illegal activities like terrorist financing, money laundering, and cyber fraud, immediately alerting when suspicious transactions occur. For aid donors, this provides a level of oversight that is nearly impossible in fragile countries.
Abdul Moti Hammoud, a resident of Halfaya, lost a leg after accidentally triggering a landmine while driving a tractor. He is a beneficiary of the aid organization Mercy Corps.
In a recent online demonstration, Nigel Pont, the company's senior advisor for humanitarian affairs, clicked on a purple dot representing a HesabPay agent in Afghanistan. Dozens of light blue beneficiary wallets unfolded, showing recent transfer records. Another click revealed where the funds went. Then, a wallet suddenly turned red, triggering a suspected fraud alert—slightly awkward during a live demo, but exactly the type of risk the system is designed to identify.
"From an aid donor's perspective, this is extremely valuable," said Nigel Pont, former Chief Strategy Officer at Mercy Corps. "A system that automatically flags fraud risks means you can verify immediately, rather than waiting six months for a report that someone stole $20,000." Nigel Pont acknowledged that no system can completely eliminate corruption, but then again, neither can cash.
22-year-old Abdul Halim Hasan was waiting in line at the same currency exchange in Syria as Ms. Almahmoud. He said he imagines a day when he can use HesabPay like a regular bank account, receiving funds, paying bills, and saving money securely. For now, though, his HesabPay card allows him to access the funds needed to restart his life after the war, and that is enough.
Ms. Almahmoud (second from left) and her family with Mercy Corps staff in Halfaya.
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