6 Ways Crypto Is Making a Difference
Since the inception of Bitcoin, cryptocurrency has captured global attention and experienced several periods of significant adoption. But what exactly is cryptocurrency good for? Beyond simple transactions, crypto and the blockchain technology that powers it are becoming powerful tools for social good and individual empowerment.
From fostering financial independence to providing aid during emergencies, crypto offers versatile use cases that support critical causes. Here’s a look at six ways crypto is changing the world:
- Crypto Philanthropy as a Force for Good
Nonprofit organizations are increasingly leveraging crypto donations to further their missions. Crypto philanthropy involves charitable giving using cryptocurrencies like Bitcoin, Ethereum, and many others. Thousands of nonprofits worldwide are already using crypto philanthropy to fund critical initiatives such as humanitarian aid and support for women’s empowerment. By accepting crypto, these organizations can connect with a wider audience, including the next generation of donors.
During crises, cryptocurrency offers accessible and direct support. Whether it’s responding to a global pandemic or providing aid after a natural disaster, crypto offers a way for organizations to quickly provide aid to those who need it most.
- Banking the Unbanked
One of crypto’s most compelling use cases is its ability to promote financial inclusion for billions of unbanked individuals. Because cryptocurrencies are decentralized, they provide people with the means to pursue economic opportunities and purchase essential items, especially in regions with hyperinflation or political instability. Crypto assists underserved communities, including smallholder farmers and minority groups, by offering access to funding, market tools, and financial services.
- Supporting Women’s Empowerment
Women are disproportionately excluded from traditional financial systems and are underrepresented in fields like technology and science. Crypto and blockchain technology offer women new paths to control their finances and advance their careers. Crypto initiatives are providing women with opportunities for education, career paths, financial freedom, and improved quality of life. From nonprofits funding STEM education for young women to NFT projects highlighting diversity in the crypto space, the aim is to ensure that crypto’s promise of shared success is realized for everyone.
- Creating New Avenues for Storytelling and Artistic Expression
The rise of non-fungible tokens (NFTs) has brought crypto art and digital collectibles to the forefront. Artists and musicians are utilizing crypto technology to express themselves and preserve culture. NFTs empower creators and can also fund nonprofit organizations. NFT fundraising has become a new, viable source of revenue for nonprofits as thousands of nonprofits have connected with NFT artists, projects and collectors to raise cryptocurrency donations for critical missions all around the world.
- Trailblazing Humanitarian Initiatives
Beyond facilitating donations, nonprofits use crypto and blockchain for operational efficiency and transparency. Organizations use digital currencies for various activities, from providing aid to making investments. UNICEF, for example, launched a CryptoFund that has invested in blockchain and data science startups worldwide.
A standout example of crypto’s impact was during the 2022 war in Ukraine. Initiatives such as the Ukraine Emergency Response Fund raised millions of dollars in crypto donations to assist the people, animals, and communities affected by the conflict. The UN Refugee Agency is using blockchain technology to provide aid to displaced persons in Ukraine.
Thanks to the support of the amazing crypto community, we are able to continue helping volunteers and shelters in destroyed and occupied areas of war-torn Ukraine. We’ve made sure thousands of animals have been rescued, fed, and cared for. This would not have been possible without the generosity of crypto donors.
- Upholding Privacy
Another key application of crypto lies in its emphasis on privacy. In many situations and locations globally, financial transactions and online activities require privacy. Crypto-based solutions like the Lightning Network and specific wallets group or mix transactions to help obscure user identities. Decentralized IDs using blockchain technology protect anonymity and help refugees safeguard their identities, thus providing greater safety.
Pursuing Prosperity and Social Good with Crypto
Owning cryptocurrency gives individuals a chance to pursue their financial goals while supporting social good. Crypto plays a vital role in the lives of millions, from the unbanked to nonprofit organizations using NFTs for fundraising. Cryptocurrency has a myriad of use cases and continues to make a significant impact worldwide.
