How Cryptocurrency is Aiding Humanitarian Causes The current status of cryptocurrency worldwide may be down and affected, but in times of need, it surely is emerging as a tool to empower the affected parties.
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As the war rages against Israel, with the death toll crossing 3,000 in the attacks made by Hamas, a group of local leaders in the cryptocurrency space have come together to raise funds for the affected groups in the area.
A coalition of 21 entities comprising 42Studio, MarketAcross, Collider Ventures, CryptoJungle, Nilos, Blockchain B7, Efficient Frontier, Ironblocks, the Israel Blockchain Association, and Bits of Gold has united to launch "Crypto Aid Israel," a worldwide fundraising initiative dedicated to providing humanitarian assistance to displaced Israeli citizens in need.
The raised funds will be allocated towards rebuilding the South of Israel, aid for the families of those killed or captured, and aid for the families of the soldiers in war. "Crypto Aid Israel will host a multisig wallet to collect donations in over a dozen forms of cryptocurrencies including BTC, ETH, USDT, USDC, and more to help anyone affected by this tragedy. This wallet will be entrusted to respected members of the local community and operated with full transparency," read the official website for the cause.
According to the website, over 100,000 EUROs have been raised and donated towards the three sub-causes.
Cryptocurrency over traditional methods
While cryptocurrency is emerging as a means to raising funds, why should it be preferred over traditional methods? Sathvik Vishwanath, Co-Founder and CEO, Unocoin feels that crypto has several advantages when it comes to raising funds. "They provide organizations with transparency of financial transactions, lower fees, global reach and better security. Donors benefit from increased transparency and lower transaction costs," he shares.
Vikram Subburaj, CEO, Giottus Crypto Platform feels that crypto transactions can take place irrespective of borders and can overcome the hurdles posed to traditional banking during conflicts.
Something similar took place for the Ukraine-Russia war, which is now running on its 595th day. According to Elliptic, a blockchain analytics firm, over USD212 million worth of cryptocurrency was donated towards pro-Ukrainain war efforts. For instance, Ukraine DAO, a decentralized autonomous organization, auctioned off an NFT of the Ukrainian flag for USD6.75 million.
Subburaj feels that "Initiatives like this are the best examples of harnessing the power of decentralized finance to provide humanitarian assistance swiftly and securely, revolutionizing the future of charitable giving."
"In times of natural disasters, cryptocurrencies can facilitate rapid fundraising efforts, enabling people from around the world to contribute seamlessly without the hindrance of traditional financial intermediaries or currency exchange challenges. This can lead to quicker relief for affected areas and communities," shares Edul Patel, CEO, Mudrex.
What about Indian market?
So can we expect to raise funds via cryptocurrency for similar causes in India as well? Vishwanath feels cryptocurrencies can be effectively used for fundraising in the Indian market, with Subburaj finding the crypto-based fundraising a 'game-changer'
"During periods of economic instability, cryptocurrencies can provide an alternative means of raising funds that is less susceptible to the fluctuations and uncertainties of traditional financial markets. This stability can be crucial in helping organizations maintain their operations and continue supporting those in need. Furthermore, in the context of pandemics like the one experienced with COVID-19, cryptocurrencies can enable transparent and traceable donation mechanisms, ensuring that funds are used efficiently and reach the intended beneficiaries without the bureaucratic delays often associated with traditional charitable organizations," adds Patel.
The current status of cryptocurrency worldwide may be down and affected, but in times of need, it surely is emerging as a tool to empower the affected parties. At the time of publishing the article, the m-cap of cryptocurrency stood at USD1.06 trillion, post a dip of 1.04 per cent over the last day.