Cryptocurrency donations increase speed and global reach during crisis.

Photo of author

By Degen Lipsa

As recently observed during the earthquake relief operations in Turkey and Syria, cryptocurrencies have really been helpful in permitting quick and unrestricted donations during catastrophes.

The blockchain analytics company Chainalysis calculates that about $5.9 million in cryptocurrency donations have been made to fund relief efforts in the area after deadly earthquakes struck regions of Turkey and Syria in February.

The Turkish Red Crescent, Save the Children, Project Hope, and the Earthquake Humanitarian Assistance campaign of the Turkish Ministry of Interior have all benefited from bitcoin donations.A number of cryptocurrency exchanges, including Binance, Bitfinex, OKX, and KuCoin, have contributed more than $9 million to help the local victims.

The blockchain analytics company Chainalysis calculates that after severe earthquakes struck areas of Turkey and Syria in February, almost $5.9 million in cryptocurrency donations have been made to fund relief efforts in the area. The Turkish Red Crescent, Save the Children, Project Hope, and the Turkish Ministry of Interior’s Earthquake Humanitarian Assistance campaign have all benefited from bitcoin donations.Also, more than $9 million was contributed to help the local victims by a number of cryptocurrency exchanges, including Binance, Bitfinex, OKX, and KuCoin.

“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.”

Another compelling reason for the usefulness of cryptocurrencies in allowing donations and help in the wake of catastrophes and significant emergencies, according to Grauer, is the capacity to precisely monitor blockchain data:

“The transparency of blockchains is a unique benefit to cryptocurrency, providing opportunities to aid organizations to track donations and for law enforcement agencies to identify and trace illegitimate schemes attempting to capitalize in times of crisis.”

According to Save the Children’s Web3 operations head Antonia Roupell, the charity initially took Bitcoin as a form of payment after the 2013 typhoon Haiyan devastated the Philippines.The organization has collected $7.4 million in bitcoin donations since 2020.

This has persisted throughout the organization’s efforts to aid earthquake victims in Turkey and Syria.When compared to donations made in fiat currency, Roupell cites a number of advantages of crypto-based donations.

Roupell claims that recurring donating is also enabled by blockchain technology. A number of Ethereum contributions were made to Save the Children in 2021 from the sales of nonfungible tokens (NFTs), some of which were used to code future donations using the smart contract capability of certain NFTs.

In addition, Roupell points out that giving cryptocurrencies to charities in the US is tax-deductible, which has increased donations towards the conclusion of the fiscal year. She also points out that average cryptocurrency donations are far greater than average fiat donations.

Although pointing out benefits, Roupell noted a drawback: most bitcoin contributors are anonymous, making it unable to express gratitude for their gifts.

The giving platform for cryptocurrencies, The Giving Block, accepts a number of coins supported by the organization. According to Roupell, the group “does not encourage, promote, or pass judgment” on any particular tokens. It also takes equities and fiat money from throughout the world, with a focus on raising money quickly to help international humanitarian efforts.

Leave a Comment