US nonprofit organization pioneering Cryptocurrency donation This is due to a surge in charitable donations. According to a recent report from BanklessTimes, his two largest charities in the United States are already raising more than $2 billion annually by accepting these digital assets.
Adoption of Cryptocurrency in Philanthropy
Jonathan Merry, CEO of BanklessTimes, is in a continent where digital currencies are known to fundamentally dominate influence in philanthropy. Digital currencies create this event because people with a lot of value tend to invest in charities that are meaningful to them. This movement is not limited to established charities. We also look at the new platforms that social enterprises are forming. Political candidates are also now using cryptocurrency donations in their election campaigns.
BanklessTimes Report, the share of top US nonprofits that facilitate the receipt of crypto donations directly through crypto processing systems accounts for 56%. Direct transfers through this “crypto pocket” save charities time on complicated transfers and speed up the process of funds flow. This integration simplifies the donation process and, along with the flexibility of digital giving, makes donating and pledging even more convenient for tech enthusiasts.
Cryptocurrency donations soar to $2 billion
Giving Block, a platform that supports crypto donations to charities, is a key conduit for this change. Their data shows that cryptocurrency donations jumped from $125 million in 2022 to $2 billion this year. This significant increase reflects growing confidence in cryptocurrency trading within the philanthropic community.
Popular organizations such as save the children, World Vision International, Water Aid US, and the American Red Cross have started accepting donations in cryptocurrency. This approach can be very useful for charities. Charities can now raise money through several fundraising methods, reach wider audiences, and find new sources of funding.
Cryptocurrency philanthropy challenges
The acceptance of cryptocurrencies by nonprofit organizations is on the rise, but it also comes with challenges. Charities must navigate a complex regulatory environment, including KYC (Know Your Customer) compliance. Anti-money laundering measures (AML) Law. These regulations ensure the legitimacy of financial transactions and the security of the financial system.
Moreover, the digital nature of cryptocurrencies increases their risks. Cyber security risks. Nonprofit organizations need to strengthen their security measures to prevent potential financial losses from cyberattacks. Despite these risks, the trend toward digital assets in the nonprofit sector is accelerating and shows no signs of slowing down.
Also read: Hong Kong financial regulator warns investors about two crypto trading platforms
