One of the major strengths of cryptocurrency is its transparency and decentralised nature. It’s easy to trace cryptocurrency transactions and multi-national projects can use them more conveniently than local currencies.
Of course, not everyone sees these benefits as benefits. Legislators often point out that the privacy of cryptocurrencies can be used to make illicit transactions.
While KYC compliance on reputable exchanges prevents illicit activity, blockchain transfers can be used to hide illegal acts. Most people, however, use cryptocurrency as a speculative asset, for everyday purchases, and even for good.
Cryptocurrency for Good
The fact that people can use decentralised currencies to get around fiat is neither inherently good nor bad. It is simply beneficial for people who live in areas where multiple fiat currencies are in use. It also allows people to send money to people who need it without dealing with currency transfer.
BlockchainBH is a Brazilian organisation that spreads information about blockchain technologies. They do this through disseminating information and supporting projects that use blockchain for good.
Warm Up is one of those projects.
The Warm Up Project
Warm Up has actually happened for the last three years, making it older than BlockchainBH. However, partnering with the organisation has allowed them to grow in size and scope.
According to the site,
the aim of the campaign is to gather donations in cryptocurrency which will be used to buy and distribute blankets to the homeless population of Belo Horizonte.
Using decentralised currency helps the organisation to get the most out of their donations by avoiding transfer and exchange fees. This allows them to profitably collect donations from around the world. Using cryptocurrency also allows for complete transparency. Donors can use the wallet addresses to donate as well as to see how much others have donated. This helps ensure that donations go where donors intend.
In addition to BlockchainBH, the Warm Up project is also getting support from Dvision Tech, a development and consultancy firm. Once donations reach a set cap, Dvision Tech matches the donations.
Looking at Cryptocurrency with Love
Transparency and donor pool size are both classic problems for charities around the world. Cryptocurrency doesn’t solve all of the problems that charities face but it helps to solve these two.
Charities that use cryptocurrency can build trust quickly and receive international donations, increasing the size of the donor pool.
There are some legitimate concerns regarding how some people use crypto. However, those concerns also extend to other forms of currency. It’s easy to be afraid of new technology. However, one should not forget to consider their qualities as well.
Jon Jaehnig is an American freelance writer specializing in Technology and Health. Jon has degrees in Scientific and Technical Communication and Journalism from Michigan Technological University and lives in Michigan’s Upper Peninsula with his wife and cat. For more from Jon, you can follow him on LinkedIn and Twitter.