UNDP wants to explore crypto’s potential for human development in 2025

A UNDP official reveals that the organization wants to explore how cryptocurrency can be used for human development while minimizing its financial risk.

UN deputy secretary general and regional director of UNDP for Asia and Pacific, Kanni Wignaraja wrote a blog on the official UNDP site Pushing a more exploratory study on how cryptocurrency can benefit humanity and economic development, especially in non-banished areas.

“It is crucial that we explored how the rapidly evolution of cryptocurrencies, digital currencies of the central bank (CBDC) and stablecoins could have a positive impact on human development,” said Wignaraja.

In his post, the UN official recognizes the enormous economic value that alternative investment assets such as Bitcoin (BTC) and Ethereum (Ethn) socket. It mentioned that in December, BTC and ETH gained market value of 3.9 dollars.

“Imagine channel even a fraction of this [market value] Towards education, health, strengthening skills and jobs, “said Wignaraja.

Although she believes that Crypto offers many advantages, such as instant cross-border transfers and can help support non-banished and sub-banking communities to ensure their livelihoods in the middle of economic disorders, Wignaraja remains tired of very very nature volatile of the cryptographic market and its sensitivity to criminal activity.

Consequently, it calls for regulatory measures which can alleviate these risks linked to the crypto while using it as a means of advancing human development.

“This may require a non-traditional regulatory framework that allows cryptocurrencies to contribute positively to human development without compromising financial stability,” she said.

In the blog post, Wignaraja also underlined the development of Cbdcs In the main Asian countries such as China, India, Indonesia, Thailand, Singapore, Japan and Korea and how they can potentially improve responsibility and reduce corruption.

Not only that, she also declared in the case of stableThe organization must start to explore the analysis and good practices to determine whether stablecoins can be used safely to improve financial resilience in recovery communities.

In addition, she proposed that the UNDP begins to test the cryptography funds under strict guarantees to assess their impact, adding that the organization is already working to extend the blockchain and decentralized technology to help follow the funds and reduce the corruption.

In November 2024, the UNDP spear A blockchain Education Academy in collaboration with the Algorand Foundation to equip 24,000 United Nations staff worldwide skills necessary to understand blockchain technology.