Cryptocurrency, despite its massive potential, has attracted negative attention owing to its use for illicit purchases and extreme volatility. However, Coinbase’s CEO, Brian Armstrong recently appealed to the crypto community in an effort to allocate digital resources for a positive cause. To this end, he created the charity GiveCrypto.org with the aim of helping people in need.
The mission of this charity is to send money directly to the distressed, advance the benefits of cryptocurrency, and provide access to an open and global financial system. While one can argue that traditional fiat currencies serve as better investment tools than crypto, digital currencies do come with their own, unique benefits.
In this blog, we’ll take a look at the role of cryptocurrencies in attracting investments for NGOs.
Securing Payments for NGOs and NPOs
People in crisis situations usually find themselves under the rule of some of the most corrupt governments on the planet. Crypto coins can be sent directly to the people without the need of third-parties (who in this case can be governments, aid providers and even non-profit organizations). This way, even people within the most volatile of situations can get access to resources.
The only problem here is the lack of additional infrastructure that enables people to cash in their coins for physical currency or goods. But even this problem has been resolved to a certain extent. For example, the World Food Program implemented digital currency vouchers in Jordan that provided around $1.4 million of aid to more than 10,000 refugees in Syria.
Other NGOs seeking to develop or further existing projects that yield societal benefits can avail similar tools that help in gathering the required capital. To date, similar systems have managed to raise money anywhere from a hundred thousand to more than a million dollars.
Many NGOs have even created what is now referred to as “charity coins” that raise money for social impact projects. For example, donors can purchase “clean water coins” that help fund the work of an NGO water charity. Similar examples include the work of the Root Project and impak that enable crypto-donors to send finances used to power anti-poverty projects and various investment mechanisms.
The growth of cryptocurrencies coupled with its acceptance is proving to be a strong reason for NGOs to start accepting payments in digital currencies that help further their cause. E-Crypto News provides crypto news updates and latest articles on technology and is an invaluable tool for both NPOs and NGOs seeking to attract investments from crypto donors. Contact us today for more information.