3 Ways Charities Will Benefit From Cryptocurrencies in 2018

Posted by Duncan Cook on July 18, 2018

Fireworks in the sky

From UNICEF to the RNLI, charities are waking up to the immense power of cryptocurrency and blockchain technology.

Demonstrating many benefits that fiat currency simply does not, cryptocurrency is opening new doors in philanthropy, with distinct advantages for both the supporter and organisation.

Here’s three of the biggest reasons why.

1. Cryptocurrency is unfazed by international frontiers.

Many charities work to provide aid around the globe and, as such, need to move large sums of money to where it’s needed most.

Banks are renowned for charging sky-high fees for foreign exchange and money transfers; this puts charities in the difficult position of adding significant extra costs to their efforts, as well as time delays.

Cryptocurrency is not restricted by geography, and operates in exactly the same way, everywhere in the world. Other than standard transaction costs, there’s no fee to transfer it to someone in another country; and these standard costs are paltry when compared to what a bank would levy.

This also serves to benefit individuals who send money to family members overseas; there’s no significant charge for the recipient to receive their funds, so they are free to use it as intended, rather than being hampered by additional payments.

On the other hand, charities are restricted by banks when their help is required in conflict zones.

Often, international sanctions will restrict the movement of money, with the country itself deciding that foreign currency cannot be used.

In these circumstances, charities are forced to transport large sums of cash into the country – which is far from ideal, given the host of practical and safety concerns.

In the case of cryptocurrency, no bank is required to authorise payments or hold the money, meaning charities are free to move it to wherever is required. As cryptocurrency uses the blockchain as a public ledger, the money is still protected, as it’s near impossible to hack or duplicate. So there’s no need to be concerned that the lack of centralised banking would equate to a lack of security.

2. Cryptocurrency is transparent.

Most modern cryptocurrency coins are ‘private’; so, the user can’t be identified, even though the details of the transaction are available on the blockchain.

Fiat currency is fungible; you can replace it with an identical item without trace.

So, if you had a pound coin in your wallet and it was replaced by another one, you probably wouldn’t notice any difference. You would also have no idea where it had been, or the ability to trace where it would go next.

Cryptocurrency itself, however, is recognisable by the blockchain as an individual unit.

You may not be able to tell who is using it, but you can certainly trace where it goes; it can be followed even through complex supply chains, allowing complete visibility of how it’s spent.

This digital footprint allows supporters to have a new sense of trust when giving money to charity.

Through the blockchain, supporters can independently verify that the cryptocurrency was used as intended, thus improving relationships and encouraging even more donations.

3. Cryptocurrency enables supporters to give more for less.

One of the biggest challenges for charities is encouraging the public to part with their money.

No matter how much somebody may want to help, people can’t give you what they don’t have. In addition, fear of an uncertain financial future may prevent supporters from setting up direct debits.

So, even when supporters do manage to donate, it’s unlikely to be regular or a particularly significant amount.

When a supporter uses mining software like Cudo Donate, they only need to use their spare computer power in order to start generating cryptocurrency for charity. Given that most of us have hardware which sits idle for most of the day (or night), there’s often plenty of spare capacity to give.

At the cost of potentially just a few pence of electricity a day, you could help to mine a significant amount of money for good causes. You’ll barely even notice you’re doing it.

Combined with the mining efforts of other supporters around the globe, millions of subconscious micro-donations will provide a meaningful donation channel for charity; you’ll change lives without even noticing.

 

Cudo Donate allows both charities and supporters to enjoy previously unseen benefits in charitable giving. Discover more today.

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Topics: Cudo Donate