Brian Armstrong, the co-founder and CEO of cryptocurrency exchange Coinbase, announced the launch of a charitable cryptocurrency fund called GiveCrypto. The goal of the new global organization is to direct financial assistance in the form of a cryptocurrency to people in need.
Why it is important
- Blockchain and cryptocurrencies open new opportunities for the non-profit sector. The use of distributed ledger technology increases the transparency and speed of transactions, removes bank commissions.
- This process is mutually beneficial. New scenarios for the use of cryptocurrency promote its further popularization.
Philanthropists will donate cryptocurrency to the needy, who can either hold on to the funds or exchange them for fiat at their own discretion. By the end of this year, GiveCrypto wants to raise $10 million and become $1 billion asset fund over the next two years.
According to Brian Armstrong, members of the community who made a lot of money from cryptocurrencies should help those in need around the world, instead of spending money on luxury cars and other status items.
“Cryptocurrency is unique in that it can be used to send small amounts of money anywhere in the world, in real-time directly to an individual in need — they just need a mobile device with an internet connection. With distribution of aid to foreign countries, high fees and corruption are unfortunately common; cryptocurrency is a way of circumventing both,”— Brian Armstrong wrote.
According to GiveCrypto blog, the goals behind project are to:
- Help people in need by sending money to them directly
- Advance real-world usage and benefits of cryptocurrency
- Provide universal access to an open financial system
To date, the fund has already raised $3.5 million, of which $ 1 million was personally invested by Armstrong. Also, co-founder of Ripple cryptocurrency Chris Larsen has reportedly contributed over a $1 million. Other contributors to the fund are Chinese mining giant Bitmain and venture capitalist Fred Wilson, who contributed more than $100,000 each. GiveCrypto plans to start donating once $10 million is collected
Recently it was also announced that a NBA team Sacramento Kings will mine ethereum cryptocurrency to support the charity initiative, MiningForGood. The cryptocurrency will be transferred to the Build Black Coalition that will seek to award scholarships to local children that want to go into studying of technology.
And it seems that charities are exceedingly willing to utilise blockchain in their work. So far, blockchain technology is mainly associated with finance or logistics. However, a blockchain can impact people’s lives directly. In May, the charity bitcoin-fund Pineapple Foundation announced the completion of its mission. During six months, the foundation has donated 5104 BTC to various non-profit organizations.
By Ekaterina Ulyanova