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Crypto Adoption Has Enhanced Existing Philanthropic Efforts — That’s Welcome News For Uncertain Time

In the past few years, we’ve seen rapid evolution in how payments are conducted. Away from the in-person exchange of paper money, and toward a world where transactions occur entirely across online platforms. 

Within this space, digital assets are starting to find equal footing alongside fiat currencies, and in some cases, even surpassing what’s been possible in traditional finance. As the cryptocurrency ecosystem continues to mature, and with global adoption on the rise, governments and institutions are finally taking notice.

The positive impact of this development cannot be overstated for people experiencing sudden socio-economic instability. When the effects of war and natural disasters are felt most acutely by those who lack financial access, the ability to send and receive funds can become a matter of basic survival.

Blockchain can remove barriers

It’s true that transferring fiat currency from one country to another has always been difficult. When payments can get log-jammed by intermediary banks, incur high fees, or experience prolonged delays, these types of transactions are often difficult to expedite.

However, the endorsement of cryptocurrency as a true asset class in several counties has helped spark massive growth within the industry. Accompanied by the evolution of L1 and L2 blockchain solutions, the efficiency and timeliness of crypto are beginning to show capabilities that transcend regular bank transactions. 

Thankfully, these developments couldn’t have arrived at a more pressing time. When a growing number of the global population is showing interest in digital assets, investing in the ability to apply them in times of crisis deserves more attention from the industry.

Where massive nonprofits and NGOs can get bogged down in red tape, digital assets are helping to provide progressive options for relief organizations looking to leverage international donations for targeted aid. Additional benefits like freedom from fees, the application of NFT utilities, and the option for anonymity all work to improve the agility of philanthropic institutions. 

That’s why, following the hostilities in Ukraine, we created our donation widget in response to cries from the global community rushing to provide their financial support. As a company, this event hit close to home. We knew that crypto had the potential to make a sizable and immediate impact in the region if applied correctly. 

By partnering with local organizations on the ground, like OHMATDYT, we were able to help secure direct aid through instantaneous cross-border crypto transfers. Those organizations then had the power to convert their digital assets into the currency that best fit their evolving needs. By creating a pipeline of support, anyone could contribute with lightning fast results. 

Crypto’s innovation continues to have an impact 

High-profile global events have forced the need for seamless cross-border transactions back into the spotlight. As more people start holding cryptocurrencies, and new populations stand to benefit from the freedoms they offer, restructuring aid to center digital assets should become a top priority.

Tanvi Ratna, Founder and CEO of Policy 4.0, wrote in their regular column for CoinDesk that, “According to Fidelity Charitable, the financial services giant’s nonprofit that advises donors on charitable giving, around 45% of cryptocurrency investors donated to charities in 2020, compared to 33% of general investors. Fidelity Charitable received around $331 million in cryptos compared to $28 million in 2020.” 

From what we’ve seen thus far, support for Ukraine has followed a similar trajectory. As of April 2022, the country welcomed over $900 million in relief aid to date, with around $100 million of that sum accounted for in crypto donations. 

Signaling its confidence in the asset class, Ukraine – which currently ranks fourth globally for crypto adoption – signed a virtual assets bill into law that recognizes cryptocurrencies as legal tender. As more countries move to accept digital assets, we’ll likely continue to see rising rates in the free movement of value.

It’s only the beginning

Since the dawn of bitcoin, it should be clear we’re experiencing a sea change in personal finance. As new studies indicate employees increasingly prefer digital assets in lieu of fiat paychecks, more industries should respond to the rising needs of a shifting landscape. In turn, tools like our donation widget help offer new avenues for individuals to contribute. 

The groundswell of global support for Ukraine has shifted the public perception of cryptocurrencies away from being synonymous with risk, and toward their embrace as an essential alternative during uncertain times. 

Now, anyone can provide instantaneous relief with payment technology that is more reliable, efficient, and cost-effective.

However, we can and must improve on these innovations if we hope to have the infrastructure in place before it’s needed next. As investors continue to diversify their portfolios with digital assets, philanthropic organizations should respond by building integrated payment options to accommodate their relief efforts. 

While blockchain technology has immense potential, its power can only be felt when applied with purpose. In the spirit of humanitarianism, both the payments industry and relief organizations should feel empowered to take full advantage of the freedom and mobility that digital assets have to offer.

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Arina Dudko

Arina Dudko

Head of Corporate Payment Solutions

CEX.IO

Member since

19 Sep

Location

Riga

Blog posts

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This post is from a series of posts in the group:

The Payments Business

Share opinion and experience on how the payments landscape is changing and learn about the challenges and opportunities facing payments stakeholders in the future.


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