International Humanitarian Financing in the Digital Age

Abstract

The article examines the transformative potential of Distributed Ledger Technology (DLT) in the international humanitarian financing system amid growing global crises and increasing demands for transparency and efficiency in the use of donor funds. The structural limitations of the traditional correspondent banking system are substantiated, characterized by lengthy transfer times, high transaction costs, and limited access for financially excluded populations. The purpose of the article is to analyze digital mechanisms of international humanitarian financing based on DLT technologies, identify their key advantages, implementation barriers, and directions for further development. Results. Based on empirical analysis of humanitarian aid programs in Ukraine, it is established that the application of blockchain platforms (Stellar Network, USDC, MoneyGram) enables a reduction in aid delivery time by 95-99% and lowers operational costs to less than 1% of the transfer amount compared to 5-15% in traditional channels. A comparative assessment of digital and traditional channels is conducted across parameters of temporal efficiency, transaction costs, transparency, financial inclusion, and scalability. Systemic barriers to DLT solution scaling are identified, including regulatory fragmentation, the digital divide, and the complexity of integration with legacy systems of humanitarian organizations. Conclusions. It is proven that a hybrid model combining the advantages of blockchain technologies with integration into traditional financial infrastructure represents the most promising development scenario for digital humanitarian financing. The practical significance of the results lies in providing a scientifically grounded basis for decision-making by international humanitarian organizations, donors, and regulators regarding the implementation and scaling of digital aid delivery mechanisms in conditions of global crises.