Challenges and Opportunities of Using Digital Currencies in Ukraine’s Recovery: Impact on Human Rights

The article examines the legal opportunities and risks of using digital currencies in the process of Ukraine’s post-war recovery through the lens of their impact on human rights. It is argued that central bank digital currency, stablecoins and cryptocurrencies may serve as additional instruments for attracting financial resources, making humanitarian and social payments, supporting business, expanding financial inclusion and increasing the transparency of aid distribution. It is established that their use is accompanied by risks to privacy, personal data protection, users’ property interests, equal access to digital financial services, cybersecurity and access to effective legal remedies. The article analyzes national and international approaches to the legal regulation of digital currencies, in particular the provisions of Regulation (EU) 2023/1114 on markets in crypto-assets, the Civil Code of Ukraine, legislation in the field of financial monitoring and Draft Law №. 10225-d of April 24, 2025. Particular attention is paid to practical examples of the use of digital currencies to support Ukraine, including the Aid For Ukraine and UkraineDAO initiatives, as well as the pilot project of the Office of the United Nations High Commissioner for Refugees on humanitarian payments using a stablecoin. The potential of the e-hryvnia as an instrument for social, humanitarian and targeted payments within Ukraine’s recovery is considered, and the main legal and organizational safeguards for its implementation are identified. The article also analyzes the potential of blockchain solutions for the transparent distribution of aid and the coordination of humanitarian programmes, using the Building Blocks system of the United Nations World Food Programme as an example. It is substantiated that the effective use of digital currencies and blockchain solutions in Ukraine’s recovery requires proper institutional coordination, the determination of responsibility of the state and private actors, as well as the implementation of human rights due diligence procedures.