SDF at Point Zero Forum

SDF recently participated in the Point Zero Forum, a gathering of fintech leaders, innovators, and policymakers to discuss blockchain technology and its real-world use cases. Chief Legal and Policy Officer, Candace Kelly, played dual roles, moderating a panel on compliance and speaking as a panelist on reimagining aid.

On the regulation panel, industry leaders from Paxos, Fireblocks, Binance, and Crypto.com discussed the challenges of integrating digital assets into traditional finance. While the need for clear regulatory frameworks and international cooperation has been discussed for years, the panelists’ remarks focused on both the “how” and the “why” that is so critical for the long-term success of the digital asset industry. As for why: as Candace moderated the discussion, panelists described how the lack of harmonization among different regulatory regimes creates friction and inefficiencies for their businesses and undermines the borderless nature of the technology. And with respect to how industry can contribute to this critical goal, the discussion revealed a shared focus on building trust through collaboration and open dialogue both among industry participants and with policymakers.

One notable topic was the EU's Markets in Crypto-Assets (MiCA) regulation. While praised as a step forward in providing regulatory clarity, panelists also pointed out potential challenges, such as strict capital requirements for stablecoin issuers. The conversation emphasized the delicate balance between fostering innovation and ensuring consumer protection.

The panel on reimagining aid highlighted the use of the Stellar network for aid disbursement. Candace shared insights into the United Nations High Commission for Refugees’ (UNHCR) use of the Stellar network to provide aid to internally displaced people in Ukraine quickly and securely.

Candace highlighted takeaways regarding UNHCR’s use of the Stellar technology and how they have leveraged other participants in the Stellar ecosystem including:

• Efficient deployment with the SDP: The Stellar Disbursement Platform allows organizations to set up fund transfers that reach the intended recipient with speed, accessibility, and transparency.
• Transparency and traceability: Blockchain technology offers enhanced visibility into the flow of digital funds, ensuring accountability for donors and aid organizations.
• Increasing financial access: By integrating with MoneyGram International, digital-to-cash conversions are possible for aid funds received in Circle’s USDC, providing access to fiat money even to those without traditional bank accounts.
• Scalability: The success in Ukraine has led to the expansion of the program to Latin America, demonstrating the adaptability of the solution.

Carmen Hett, UNHCR's treasurer, offered valuable insights into the challenges and opportunities in aid distribution and drew attention to areas where more innovation is needed:

• Digital identity: Developing comprehensive digital ID solutions that include payment capabilities, education records, and health information is essential for long-term support of displaced individuals.
• Financial and digital literacy: Alongside technological solutions, there's a need to educate aid recipients to use digital financial tools effectively.
• Connectivity: Solutions work well in areas with good internet access, but efforts must continue to be made to reach underserved regions with limited connectivity.
• Holistic approach: The goal is not just to provide immediate aid but to help recipients rebuild their lives and livelihoods in the long term.

The Point Zero Forum served as an important reminder of the transformative value of blockchain technology when applied thoughtfully and responsibly. As SDF continues to help bridge the gap between blockchain and the real world, we remain committed to working with regulators, financial institutions, and humanitarian organizations to create equitable access to financial services around the globe.