Cryptocurrency in Bulgaria

In the years following the fall of the Eastern Bloc, Bulgaria still struggles in comparison with the rest of Europe. As of 2016, the government of Bulgaria reported that an estimated 23.4 percent of its population lived below the poverty line, while as of 2017 the unemployed constituted around 6.2 percent of the population. Bulgaria also happens to have the lowest annual salary, minimum wage and average pension amount in Europe, while also suffering high rates of outmigration, governmental corruption and overall mortality. Though these problems may appear overwhelming, the use of cryptocurrency in Bulgaria provides a means by which steps may be taken to mitigate these issues.

Fundamentals of Cryptocurrency

As a medium of exchange, cryptocurrency by its very nature expedites humanitarian aid to distressed regions. This is because it sidesteps the need for a financial institution as an intermediary between grantor and recipient, thus providing a means of direct payment for potentially large amounts. The realities of governmental and organizational corruption and incompetence that hinder international aid may be entirely evaded, resulting in more effective and efficient aid conveyance even to the most turbulent locations.

Furthermore, an estimated 40 percent of adults, mostly residing in the developing world, face impediments to the formation of a financial identity that may appear nearly insurmountable. However, cryptocurrency provides an alternative means by which people without easy access to financial institutions or who lack sufficient capital to open a bank account may establish a financial identity and improve their chances of escaping poverty. Moreover, despite the market volatility of cryptocurrency in Bulgaria and throughout the world, it provides a fairly stable alternative compared to entrusting one’s assets in banks and other financial institutions. Savings stored as cryptocurrency are less likely to be subject to the vicissitudes of inflation, corrupt governments and asset appropriation.

How an NGO Uses Cryptocurrency in Bulgaria

The BitHope Foundation, an NGO established by Vladislav Dramaliev, provides a global crowdfunding platform for humanitarian initiatives. As the first charitable platform of its kind established on the basis of cryptocurrency in Bulgaria, it seeks to facilitate NGOs and individuals alike in their fundraising efforts. This organization hopes to incentivize businesses that accept cryptocurrency to invest in these causes, which will further bolster the public impression and acceptance of cryptocurrency as a legitimate medium of exchange.

Many crowdfunding campaigns hosted through the BitHope Foundation’s website are considered to be humanitarian successes in Bulgaria. For instance, the “Support Burgas Municipality After the Floods” campaign raised €1,749 in cryptocurrency or approximately $1,925, in response to floods that damaged parts of Burgas municipality, a region of Bulgaria on the Black Sea coast. These charitable contributions went toward the purchase of household needs including refrigerators and microwave ovens for those affected by the floods.

Specific Campaigns by BitHope

  • “Every Child Deserves A Holiday” aimed to raise charitable funds for families living below the poverty line, raising €588 or approximately $647, in cryptocurrency.
  • The “Support Positive and Character Education” campaign, which raised the equivalent of €786 (approximately $865), sought funding for programs designed to inspire children and parents to persist with schooling regardless of what predicaments may arise.
  • The “Sports Charity League” campaign enabled the funding of sports competitions for children and adolescents, after raising a cryptocurrency total of €1,522 or $1,674.
  • The 2017 funding campaign “Preeclampsia? I want to know” raised €1,132 ($1,373) for the acquisition of biomedical tests for use in screening pregnant women without charge for the potentially serious medical condition preeclampsia.
  • Also in 2017, a campaign called “Hope for Mental Health” accrued €358 ($434) in funds to assist mentally disabled children and adults in obtaining health care.

BitHope in the Present

These successes emerged in spite of numerous impediments standing in the way of using cryptocurrency in Bulgaria. Besides a global decline in the total market cap of cryptocurrency from $604 billion to $131 billion in 2018, the Bulgarian government persists throughout 2019 in its refusal to allow cryptocurrency-based organizations to open a bank account for the storage of cryptocurrency. Although this complicates the withdrawal of funds, the cryptocurrency conversion process, accounting, tax payments and payments to internet service providers, such difficulties have made the BitHope Foundation more resilient in its fight to address humanitarian issues in Bulgaria.

– Philip Daniel Glass
Photo: Flickr