According to the Chain analysis research, crypto adoption increased by 2300% in 2021 as compared to 880% in 2020. Every day, over $12 billion is transmitted across Bitcoin, Ethereum, and Litecoin networks, with millions of users utilizing crypto for various purposes. The upward trend has continued as more users have joined the crypto bandwagon.
As a result, numerous sectors have shifted their focus to crypto, and the philanthropic sector is one of them. Charities are increasingly turning to cryptocurrencies for fundraising since it has proved to be more efficient than other traditional methods. With features like convenience, transparency, global nature, and high transaction speeds, crypto has presented itself as a game-changer for fundraising for non-profit organizations.
Solving Existing Charity Problems through Crypto
Traditional charity fundraising is plagued with many challenges. One of the significant issues is that many people do not believe that money will reach its intended recipient. As an example, the Red Cross recently came under fire in Australia for not revealing where the $90 million donated funds were going. While the money was being properly managed, the lack of transparency put the organization under extra scrutiny, affecting the credibility of the impact-led brand.
Another issue is that the process of donating through a traditional website or platform is full of complications. Most of them ask visitors to fill out forms, verify their identification, and attach a payment method before they can actually access the donation page. To make things even worse, some websites also contain third-party fees that might induce a user to donate less or to not donate at all, repressing the motive of giving.
However, new solutions are emerging as a result of the advent of Blockchain and Crypto. One of these solutions is Baby Santa, a charity token completely focused on giving back to society. As a blockchain-based platform, all donations through Baby Santa are registered on a public ledger, leaving no room for falsification of the fund usage. Anyone can easily check their transactions and verify if the funds are in fact being used for the announced causes. Alongside that, Baby Santa also makes the donation process simple and time-saving and it eliminates the need for third parties or extra fees.
There are other projects working on a similar cause and the growth of these charity tokens is proving to be extremely helpful to the community as well as to the investors. Moreover, with a mass adoption, the sector may undergo a major transformation in the upcoming decades. It can be said that the long-awaited transformation in charity has now started, all thanks to the blockchain and to cryptocurrencies.
Looking Ahead – Mass Adoption of Charity Tokens
The future of cryptocurrencies and charity tokens promises to play a more significant role in the world of charity and giving .With over $40 billion being raised to charities in 2020, it is clear that there would be a significant change in the upcoming years. Furthermore, with the rise of the total value locked (TVL) in crypto, the industry would witness a tremendous boost in philanthropic crypto donations.
In addition, no transfer taxes will be included in this project, so that the community would be also able to send BSTv2 to their loved ones in other countries only by pushing a button, which will underline the importance of the gift of giving, that is another form of charity.
However, it may take a few years before charities deep dive into DeFi, but providing the sector the option of riding the crypto wave is a first step towards allowing them to enter the lucrative world of DeFi.
Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice
