The crypto industry has an underrated aspect: some of the world's largest charities incorporate cryptocurrencies. Many individuals who donate to charity do so using cryptocurrencies, making crypto enthusiasts philanthropists.
During the initial stages of the Ukraine-Russia war, donations were requested for Ukraine, and a significant number of people donated using cryptocurrencies. This was due to the limited use of banks for transactions at that time. Cryptocurrencies proved to be a valuable tool for reaching the unbanked population. However, this is just one example.
Binance Charity, the philanthropic arm of the global blockchain giant Binance, conducted a crucial survey. They made this survey in honor of the International Day of Charity on the 5th of September. The major highlight of this survey was that it sought to unlock many truths regarding the concept of donations and philanthropy.
The survey was conducted with 1,126 participants, comprising both Binance users and the general public. The survey focused on topics like crypto charity projects, donations, and philanthropy. The results were astounding. It was found that the conventional methods of charity, such as cash, credit cards, and checks, still make up 43% of donations.
In fact, there is no dispute over the effectiveness of traditional donation methods. The most important aspect is aiding those impacted by the cause. This survey highlights that the cryptocurrency sector is gradually gaining ground on conventional philanthropy methods. According to the study, 32% of participants expressed their preference for donating via cryptocurrencies.
Going into much detail shows that many people have fully embraced the idea of using cryptocurrencies to help others. 29% of survey participants actively use cryptocurrencies when donating on a crypto fundraising platform for charity.
Blockchain-Based Charity Highly Appreciated
The blockchain and the crypto industry are highly appreciated when it comes to the issue of handling finance and donations. Apparently, there are certain qualities the crypto industry has that the traditional finance system can only dream of. One of them is transparency. One of the reasons people prefer to use cryptocurrencies for their donations is that there's no intermediary. The implication is that one can easily send their donations directly to those needing them without passing them through third parties.
According to the Binance study, 37% used cryptocurrencies for donations due to their transparency, while 32% used cryptocurrencies for their efficiency and cost-effectiveness. The following 28% in this study used the blockchain to donate to charity because of the existing accountability.
At any point, you can easily jump on the blockchain to get your transaction details. The same can't be said about the traditional finance system. For about 27% of respondents in this Binance survey, transparency was something they were not going to play about when it came to donating to charity. Hence, they preferred using cryptocurrencies.