BlockChain technology is gradually creeping into the charity sectorto establish a structure based on trust and transparency. This comes at a period when most donors have lost faith in charity organizations due to awful events that have curiously tormented their minds on how these organizations utilize the money given to them.
Governments and Crypto Projects in Charity have come to stay!
Today, most leaders around the globe have consistently developed concerns towards the use of cryptocurrency and BlockChain for charitable projects. However, just a few have made a legislative measure that will control the currency.
There are several examples of these steps by the government to implement cryptocurrency in charity projects.
Recently, British Virgin Island, in collaboration with Lifelab.io (a BlockChain company), brought-about a digital option for its residents on the island. The blockchain option will enable them to easily purchase goods and services using digital currencies during crisis or emergencies.
‘’The invention of cryptocurrency-based financial intervention is coming at a time when our people urgently need it. We have witnessed brutal natural disasters over the past, they are still fresh in our hearts, and this is causing more pressure towards economic development’’said Andrew Fahie, the first minister of finance for the British Virgin Islands.
Remarkably, in 2017, a strictly bitcoin-operated charity organization donated 5,104 BTC (about $55,750,000 that year) to 60 charity organizations over the globe. This fund was used for various projects; notably, the supply of potable water in the sub-Saharan part of Africa, and also, for digital rights protection.
The Charities Aid Foundation (CAF) have also reaffirmed their trust in the use of blockchain technology in charity organizations as it possesses excellent features that could contribute immensely to alms and aid giving. The UK based organization also noted the ability of the digital currency to create a secure channel to transfer charity funds from one location to another with the utmost transparency in the process.
Following this, the leader and head of policy at CAF, while commenting on the synchronization of blockchain technology into the operation of charity organization said:
“An increase in clarity and honesty through the use of decentralized currencies has a significant effect towards reviving the lost trust among charity donors who no longer have confidence in donating due to concerns over how these funds were spent. It would be highly effective, especially in areas where funds have to pass through many borders as it would reduce the heightened fear of fraud and mismanagement.”
However, he also expressed fears that the implementation of such a transparent process would create a different perception among donors. Particularly, when they have a different intention to the actual purpose of what their money was used for.
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