It is of vital importance for help to reach people who need it the most – those that are affected by crises such as war and hunger or natural disasters such as earthquakes. Crypto donations are of immense benefit here, bypassing challenges that arise from banking delays, bureaucracy and cross-border limitations.
The advantages of the crypto donation process
Crypto donations are unique because rather than using traditional banking channels, donors give through digital currencies such as Bitcoin, Ethereum, and USDC. In this way, funds can get to the affected people much more quickly and more transparently.
How does transparency come about, you ask? A record of every transaction on a blockchain ledger makes it possible to trace every crypto transaction. This helps to ensure that the donation gets to the right destination while also helping to reduce the misuse of funds.
These advantages are of immense benefit to beneficiaries who are in urgent need of such aid.
Examples of crypto donations coming to urgent rescue
Consistent relief from extreme poverty in Africa
Imagine the relief that people who suffer from extreme poverty can feel when they receive timely and consistent aid. Crypto donations are making that possible. There are current campaigns by GiveDirectly that provide basic income in the form of monthly payments to some of the poorest communities in Kenya, Malawi, Mozambique, and Liberia. According to GiveDirectly, millions of dollars have been distributed to over 23,000 individuals across Kenyan villages since 2017. These payments help to lift people in extreme poverty so they can meet their basic needs.
Rapid relief during Ukraine’s 2022-23 war
Just over a month after Russia’s invasion of Ukraine (March 28, 2022), the relatively fresh official crypto wallets opened by the Ukrainian government had received crypto donations worth over $56 million. This rapid global response helped to fund needed medical supplies and humanitarian aid – another example of crypto donations coming to the rescue during a crisis.
Speedy and transparent earthquake relief in Turkey and Syria
The two earthquakes on February 6th 2023 in Turkey and Syria were devastating with The Guardian reporting a death toll of over 47,000. To exacerbate the situation, political tensions made the distribution of aid more complicated. Crypto exchanges and donors were able to raise over $12.5 million to provide relief for those affected. Moreover, the transparency of blockchain made it easy for donors to track fund allocations. Beneficiaries were able to receive aid such as temporary housing and emergency food.
Redefining Humanitarian Aid During Crises
Blockchain technology continues to evolve and the expectation is that its role in providing humanitarian aid will keep expanding. You too can bring the advantages of urgent relief and transparency in areas suffering from various forms of crises through crypto donations.
