Crypto Donations on the Rise

In the wake of the devastating earthquakes that struck Turkey and Syria in February, nearly $5.9 million in cryptocurrency donations have been directed towards relief efforts. Various organizations, including the Turkish Ministry of Interior’s Earthquake Humanitarian Aid campaign, the Turkish Red Crescent, and Save the Children, have successfully received these digital contributions. Additionally, major cryptocurrency exchanges such as Binance and Bitfinex have stepped up, collectively donating over $9 million to aid victims.

Tracking Donations with Precision

Cointelegraph sought insights from Chainalysis, the blockchain analytics firm that meticulously tracks these donations. According to Kim Grauer, the firm’s director of research, the process relies on a combination of expert human intelligence and proprietary heuristics. This dual approach not only monitors legitimate donations but also keeps an eye on scams trying to siphon off funds intended for relief.

The Speed of Transactions: A Game Changer

Grauer emphasizes the importance of cryptocurrency’s swift and global transaction capabilities, saying,

“Cryptocurrency is cross-border, instantaneous, and liquid, making it an ideal technology for raising funds and getting them to where they are needed most quickly.”

In times of crisis, this efficiency allows funds to travel where they’re needed without the usual delays associated with traditional banking systems.

Transparency: The Double-Edged Sword

One of the standout features of blockchain is its transparency. As Grauer notes, this quality allows organizations to track donations and provides law enforcement with tools to identify scams. In a world where every dollar counts, being able to trace funds ensures that help reaches the right hands.

A Growing Trend in Charity

Antonia Roupell from Save the Children has observed a marked shift in donation trends since the organization first accepted Bitcoin as a donation method during the aftermath of Typhoon Haiyan in 2013. Since 2020, they have raised a staggering $7.4 million in cryptocurrency, which Roupell attributes to engaging a new base of supporters, mostly first-time donors.

Why Crypto Over Cash?

Roupell highlights several advantages of crypto donations over traditional fiat ones:

• Higher average donation amounts
• Tax benefits in the U.S. that encourage last-minute giving
• Innovative fundraising options, including using NFTs for recurring donations

However, there are drawbacks; the anonymity of many donors makes it challenging to thank them personally. Despite this, Roupell remains optimistic about the future of blockchain solutions in humanitarian efforts.

Embracing a New Era of Charitable Giving

According to Roupell,

“Cryptocurrency is a great donation vehicle, but the underlying technology, peer-to-peer electronic cash, is truly revolutionary for economic inclusion.”

The organization accepts a variety of cryptocurrencies via platforms like The Giving Block, without endorsing any specific tokens, alongside traditional fiat currencies. The focus remains clear: raising funds urgently and effectively to response to global humanitarian crises.