Decentralized IDs: A Lifeline for Refugees

The United Nations High Commissioner for Refugees (UNHCR) is undertaking a pivotal mission: building a robust identity infrastructure with decentralized identity and zero-knowledge proofs (ZK-proofs) to safeguard refugees. This initiative is critical in ensuring that refugees crossing borders maintain a verified and intact identity, a key challenge they often face.

The Plight of Refugees and Identity Verification

Refugees frequently struggle to prove their identities, as the verification keys often lie with their governments, which they have fled. In a recent panel discussion moderated by Cointelegraph’s Kristina Cornèr, Carmen Hett, the Treasurer of the Division of Financial and Administrative Management for UNHCR, highlighted this dilemma. “Imagine yourself as a refugee going across borders, not all the laws in every country are the same,” Hett stated. The absence of verifiable identity can bar refugees from accessing bank accounts, employment opportunities, and other essential services.

Zero-knowledge proofs stand out as a viable solution in this context. These cryptographic protocols enable one party to demonstrate the veracity of a statement to another party without revealing any actual information about the statement. This technique is increasingly being integrated into digital identity solutions, allowing refugees to prove their identities without needing to display original documentation.

While the UNHCR acknowledges the potential of ZK-proofs in securing refugee safety, Hett emphasizes the need for increased regulatory efforts for broader adoption. The UNHCR, with a mandate to aid and protect refugees and displaced communities, is also exploring blockchain technology for efficient aid delivery. A notable example is the December 2022 pilot project delivering USD Coin (USDC) to Ukrainian refugees, which demonstrated the speed and transparency of blockchain-based aid transfers.

Apart from technological solutions, the UNHCR is committed to enhancing the financial and digital literacy of displaced refugees, preparing them for cross-border movements with secure and accessible financial resources. This educational endeavor is designed to empower refugees, enabling them to handle their finances securely and efficiently in their digital wallets.

The UNHCR’s focus on decentralized identity and zero-knowledge proofs marks a significant stride in addressing the complex challenges refugees face. By leveraging technology, the agency is not only ensuring the safety and dignity of refugees but also paving the way for their financial and digital empowerment. As the world grapples with increasing displacement crises, such innovative solutions offer a beacon of hope, promising a more secure and inclusive future for refugees globally.