Former Coinbase CTO says the crypto industry should build more financial tools for refugees and stateless people as conflicts and migration increase worldwide.
Tech investor and former Coinbase chief technology officer Balaji Srinivasan has called on the cryptocurrency industry to prioritize the development of financial tools for refugees and stateless individuals. His appeal highlights a growing, urgent global need as conflicts and economic pressures drive record levels of displacement.
A Call for “Wartime Mode” Financial Infrastructure
In a post on the social platform X, Srinivasan argued that the number of displaced persons is poised to rise further due to intensifying global conflicts and increasing economic migration. He cited recent examples, including Ukrainians fleeing war and workers departing Gulf countries amid regional tensions.
“We should build more crypto tools for refugees and stateless people,” Srinivasan wrote. He framed blockchain-based systems as critical infrastructure capable of functioning when traditional financial institutions fail or become inaccessible. Srinivasan described cryptocurrency as the internet’s “wartime mode,” noting that decentralized networks are engineered to operate under hostile conditions—such as cyberattacks, infrastructure breakdowns, or financial sanctions—where centralized systems might falter.
The Gap Between Potential and Reality
Srinivasan’s comments responded to a critique from Andi Duro, founder of research site TwoCents. Duro contended that despite crypto’s theoretical suitability for serving stateless populations forced to rely on unstable institutions, the industry seldom builds products specifically for this demographic.
“It’s very unfortunate that crypto is a great solution for refugees who are stateless and forced to interact with crumbling institutions and payment rails,” Duro wrote. “But nobody in crypto builds for refugees because they’re not useful consumers for gambling.” This observation points to a market-driven gap, where the lack of immediate commercial incentive hinders product development for a vulnerable group.
Srinivasan acknowledged some progress, particularly in the adoption of stablecoins as borderless digital money. “But we can do more,” he added, implying that the industry’s focus has been narrow.
Stablecoin Surge: A Case Study in Crisis-Driven Adoption
The potential real-world impact of such tools is evident in recent market data. As Cointelegraph reported, the market capitalization of the USDC stablecoin is nearing a record $80 billion. Its circulating supply has surged to approximately $79.2 billion, up from about $70 billion in early February and surpassing its previous peak from December.
A Dubai-based analyst linked this spike directly to capital flight from the United Arab Emirates, driven by turbulence in the local real estate market. The DFM Real Estate Index has declined sharply since the start of the year, prompting investors and residents to seek more stable stores of value. This scenario exemplifies how stablecoins can serve as a financial lifeline during localized economic crises, a function that could be extended to displaced populations globally.
Srinivasan’s advocacy underscores a pivotal question for the industry: can crypto evolve beyond speculative trading to build resilient, inclusive financial infrastructure for those most in need? The current adoption patterns, like the USDC surge in the UAE, suggest the technology is already being used in times of stress. Scaling intentional, user-friendly solutions for refugees would represent a significant step toward fulfilling crypto’s foundational promise of financial sovereignty.
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