The Roles Of Cryptocurrency In Charity And Philanthropy

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Today I would be discussing in details another wonderful topic The Roles of Cryptocurrency in Charity and Philanthropy.

We all are familiar with Cryptocurrency being a digital currency.that has fully in most part of the world replaced the old system of Money or Fiat transaction, bringing transformation and development to various economic sector such as finance,technology, education etc.

We can say in recent years that the impact Cryptocurrency has on Charity and Philanthropy has evolved in great measure bringing new innovative for transparency efficiency and it wide spread around the world in matters of charitable giving or donations

This blog post shall delve deep on how Cryptocurrency is able to acheive and evolve charitable donations and Philanthropic service, its rise to lime light, and the roles it plays.

Charitable organization faces alot of challenges that are caused by the traditional system of transaction, Cryptocurrency on the other hands introduces new benefits and offers reliable solutions to the challenges.

I would be discussing few key roles Cryptocurrency plays in Charity and Philanthropy below.

• IMPROVING THE LEVEL OF TRANSPARENCY

Blockchain being the infastructure of almost all Cryptocurrency, ensures all transaction carried out are stored and recorded on an immutable ledger, there by reducing the risk of fraudulent activity on the blockchain and also mismanagement of funds.

As every transaction or contributions can be traced by donors and see how they are being used. This builds trust between the donors and charities

• LOW COST OF TRANSACTION FEE

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When it comes to overseas transactions done with our local Banks it often attract higher transaction rate.making it hard to attract donors oversea because of the stress, and time it consumes.

Cryptocurrency on the other hand, have seemlesly lower fees, making it more easier for donors to fundraise for the cause any where they are in the world.This allows small charities organizations with tighter budget get the funds they need and send to the intended beneficiaries

• ENHANCING WIDER GLOBAL REACH

It is more easier to send a Cryptocurrencies across the shore of one nation than using the old traditional Banking system which is more stressful,has a lot of procedures, consumes more time and energy and are also limited by geographical boundaries.

Unlike the Banking system Cryptocurrencies are not bounded by geographical boundaries and are more easier to send to any part of the world.

Making it a lot faster for donors to contribute anywhere in the world. This doesn't only help the charities reach to donors around the globe it also increases their funding

• ACCELERATED TRANSACTION AND PRIVACY

We all can say that in bank transaction are very slow, and tiring and even time consuming compared to Cryptocurrency transaction, which are processed at a high speed, this is very critical in times of urgency or emergency where funds are needed immediately.

Also Cryptocurrency ensures a high level of anonymity allowing donors to fundraise without exposing their identity because most donors prefer to keep their activity private.this feature encourages more donors to contribute knowing that their identity are private.

As much as Cryptocurrency is preferred it has its challenges that are faced by both the charitable organization and the donors.

A lot of individuals are not too familiar with the normal day to day running system of the blockchain, how to buy,sell,store or transfer asset from one person to another requires a level of knowledge of blockchain.which can pose as hindrance to some

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Also while the blockchain technology poses impenetrable to hacking, digital wallet used as a means to store Cryptocurrencies are prone to hacking.making it more easier for Charities to lose their funds

As the world continues to embrace innovation Cryptocurrencies can change charities and Philanthropy by distributing funds at low transaction fee making it more attractive to Charitable organizations.

Although while the challenges of Cryptocurrencies are real, acceptance of Cryptocurrencies also suggest a promising future for Philanthropy which will also play a role in making a postive impact in the world.