In the ever-evolving world of finance, cryptocurrencies have emerged as formidable players, reshaping the approaches we use to conduct transactions. These digital currencies have not only revolutionized peer-to-peer transactions but have also expanded their influence into the realm of philanthropy. Paradoxically, a sphere largely born from anonymity is finding purpose in altruism, with growing recognition for ‘Cryptocurrency for a Cause’.
Digital philanthropy is not new per se; it’s been around concurrently with the rise of online payments. However, it’s the era of cryptocurrencies that has contributed an entirely unique dimension to it. Cryptocurrency donations have disrupted traditional approaches to charity, enabling a more secure, transparent, and borderless way for individuals and organizations to contribute to causes they care about.
#### The Rise of Cryptocurrency Donations
In a world that’s increasingly going digital, cryptocurrencies offer a fresh take on fundraising. The concept of digital donation started gaining traction with the likes of Bitcoin and Ethereum. These trailblazing digital currencies introduced a new way for potential donors to offer their support. Since their inception, we’ve seen countless more such platforms come into existence, with numerous charities now accepting donations in multiple cryptocurrencies.
Enhanced accessibility to global donors, reduced costs related to traditional money transfers, minimal risk of fraud, and traceability are some of the prominent reasons why cryptocurrencies have found favor in the world of charitable giving.
In a noteworthy illustration, UNICEF became one of the early international NGOs to accept and disburse digital donations. In October 2019, UNICEF launched a Cryptocurrency Fund to receive, hold, and distribute donations in ether and bitcoin. This move enabled the global organization to receive unrestricted funding to develop technology-based solutions for children and young people.
#### Making Waves and Impact
Cryptocurrency donations are increasingly put to work for some noble causes, demonstrating transformative impacts. For example, Fidelity Charitable, the philanthropic arm of financial services company Fidelity Investments, reported receiving $69 million in cryptocurrency donations in 2017 alone. The Pineapple Fund, founded by an anonymous Bitcoin millionaire, pledged 5,057 bitcoins to 60 charities around the world, all in 2017.
Then, there’s the impressive story of the “Save The Children” foundation, which, since 2013, has been receiving donations in Bitcoin. In 2018, amidst the market downfall, Save The Children took an audacious step by using their bitcoin donations to fund a groundbreaking blockchain project to improve school attendance in rural African schools.
#### Charting the Pathway
Cryptocurrency donations have the potential to drastically increase the reach and impact of good causes. As these digital assets become more mainstream, the scope for larger donations could increase exponentially.
The beauty of this digital wave of philanthropy lies in its embracement of inclusivity. Not limited by geographical boundaries, currency conversion rates, or banking fees, it opens up opportunities for individuals from all walks of life to contribute to causes they truly believe in.
However, it’s essential to be aware that, like any new frontier, cryptocurrencies come with their challenges. Regulatory issues, volatility in currency value, lack of awareness, and understanding are a few that need addressing for sustainable development.
As we navigate through this digital revolution, it’s clear that cryptocurrency donations are here not just to challenge, but redefine the notions of giving and transformation, creating far-reaching implications for individuals, communities, organizations, and, indeed, societies at large.
For those who have staked their futures on the revolutionary power of blockchain technology, cryptocurrency represents not just an economic phenomenon but also a force for making the world a better place.
Reference List:
1. UNICEF. (2019) UNICEF launches Cryptocurrency Fund [Online] Available at: https://www.unicef.org/press-releases/unicef-launches-cryptocurrency-fund (Accessed: 30 March 2022).
2. Fidelity Charitable. (2017) Fidelity Charitable Received Record $69 Million in Cryptocurrency Donations in 2017 [Online] Available at: https://www.fidelitycharitable.org/about-us/news/fidelity-charitable-received-record–69-million-in-cryptocurrency-donations.html (Accessed: 30 March 2022).
3. The Pineapple Fund. (2017) The Pineapple Fund [Online] Available at: https://pineapplefund.org/ (Accessed: 30 March 2022).
4. Save the Children. (2018) Save The Children Now Accepting Bitcoin Donations [Online] Available at: https://www.savethechildren.org/us/about-us/media-and-news/2018-press-releases/Save-the-Children-Now-Accepting-Bitcoin-Donations (Accessed: 30 March 2022).
