Cryptocurrency and Poverty Reduction
An increasing number of nonprofit organizations are looking to cryptocurrency to help reduce global poverty. The immediacy, inclusivity and stability that cryptocurrency promotes could be invaluable for those who are in crisis, lack access to a bank or struggle due to hyperinflation. Here are four examples of how cryptocurrency and poverty reduction are coming together:

GiveCrypto

GiveCrypto is a nonprofit organization that links cryptocurrency and global poverty reduction. Since founding members currently cover operating fees, 100 percent of the funds GiveCrypto accumulates goes to the recipients. While Bitcoin is the most recognized cryptocurrency GiveCrypto uses, this nonprofit also transfers money through Bitcoin Cash, Litecoin, Ethereum, XRP and Zcash. GiveCrypto emerged on June 20, 2018, and has raised $4 million so far. The founders hope that GiveCrypto will improve the well-being of individual people struggling in their communities. However, they also intend for GiveCrypto to build up the economies of these communities. For this reason, the ultimate goal of the organization is “to help spark economic growth by giving access to property rights and financial services on an open network.”

CareBit

The founders of CareBit specifically designed the CARE coin for charity purposes. Unlike GiveCrypto which is merely a platform to distribute several different types of cryptocurrency to those living in poverty or financial crisis, CareBit is its own cryptocurrency. The purpose of creating the CARE coin is to link cryptocurrency and poverty reduction more directly. Currently, CareBit is the only independent charity on blockchain, a technology that documents and decentralizes transactions. By directly implementing a charity model into blockchain, CareBit is able to trace transactions to ensure that 100 percent of each donation reaches its intended recipient. The ultimate goal for CareBit is to increase transparency and to decrease fees, corruption and fraud in any given transaction.

BitGive

BitGive emerged in 2013 and is Bitcoin’s first nonprofit charity. BitGive partners with international relief organizations and local charities such as The Water Project, Medic Mobile and Save the Children. Just like CareBit, BitGive implements its charity directly into blockchain in order to effectively track donations and increase its efficiency. Additionally, BitGive uses the blockchain technology GiveTrack to publicly track financial information and share this information in real-time. With GiveTrack, donors can track funds and ensure donations reach their final destination. The other benefit of BitGive is that processing fees are considerably less. On average, 3.61 percent of donations go towards processing fees for the average nonprofit. On the other hand, BitGive spends less than one percent of donations on fees.

Binance Charity Foundation

The Binance Charity Foundation (BCF) is the philanthropic extension of Binance Exchange. BCF uses Binance Coin to integrate cryptocurrency and poverty reduction. In contrast to the nonprofits mentioned above which focus on financial poverty reduction, BCF specifically focuses on improving the overall health of women in developing countries. For instance, BCF has recently partnered with 46 other organizations to provide a one-year supply of sanitary products to approximately one million women. Women will receive these sanitary products by using the Pink Care Token (PCAT), a redemption-only token on the Binance blockchain.

Uniting cryptocurrency and poverty reduction initiatives demonstrates the increasing demand for improved donating systems in response to a lack of trust in how charities spend their funds. Thus, the increased transparency that cryptocurrency offers through blockchain’s traceability feature could potentially reassure donors and encourage them to donate. Whether or not cryptocurrencies will become influential enough to directly strengthen the economies of the developing world, however, is still unclear.

– Ariana Howard
Photo: Unsplash