Crypto-based charity efforts are revolutionizing the way philanthropic organizations deliver aid to people in need. With crypto donations, givers can trace their support with greater accountability and streamline operations across different locations and jurisdictions. Plus, crypto eliminates the need for reliance on banks and the risks associated with physical money.
Organizations benefit from crypto donations as well, since they can directly reach the hands of people in need and provide easier access to a larger population. This creates a more effective approach to support, with a focus on financial literacy and education.
An example of this is Oxfam International’s UnBlocked Cash, which provides financial assistance to communities in Vanuatu and Papua New Guinea while saving on distribution costs and reducing delivery times. Blockchain technology is used to empower people and bring them into the local economy.
To ensure donations are used responsibly, charities often provide financial literacy education alongside crypto donations. Binance Charity’s pilot venture in Kenya, for example, provided blockchain-based e-vouchers and employed Community-Based Trainers (CBTs) to teach village members about crypto vouchers and blockchain. The financial autonomy of the villagers is the greatest gain from this venture, as a blockchain-based infrastructure has been established to help them save and manage their money in the long run.
Partnerships between crypto firms and charity organizations are essential for amplifying the impact of philanthropic efforts. By targeting all community members regardless of their age or gender, these projects also help to strengthen women’s financial empowerment and reduce gender inequality.
Crypto philanthropy has the potential to become a new norm of charity, offering more efficient aid with greater accountability. With the right training and education, people in need can be empowered by cryptocurrencies and achieve true financial autonomy.