The world’s first crypto charity has launched, accepting Bitcoin Cash and other crypto charity donations. The world’s first crypto charity provides clothing for those in need and is based in Toronto, Canada. Coin 4 Clothes aims to introduce people to bitcoin cash (BCH) while also assisting the disadvantaged. In this way, two humanitarian objectives are being achieved.
How the world’s first crypto charity works
Crypto charity donations are collected from around the world and these donations are used to purchase clothing for people in the community. The clothes are donated to Toronto based charities. The charity only spends and accepts cryptocurrency and all donations are tracked and monitored on the financials page. Those who donate their used clothing also have the opportunity to earn BCH.
Compared to other charities, with a 95% administrative burden, 100% of BCH goes towards the purchase of clothing and helping those in need. Another benefit of crypto charity is that the money can be sent to the address practically for free. With traditional centralized charity models, money was lost using expensive banking systems, accounting methods, and regulatory compliance which ultimately meant that a fraction of the money ended up in the hands of those in need.
The benefits of DLT in the charity sector
Using cryptocurrency and DLT in the charity sector can alleviate some of the problems associated with the centralized model, which is often susceptible to corruption and inefficiency. All transactions are transparent on the blockchain, and funds do not go “missing” as often happens. Accounting processes can be streamlined and the capacity for corruption is minimized due to the benefits provided by distributed ledger technology.
The Oxfam scandal is the latest in a long list of systemic failures in the charity sector, and these failures can be linked to the lack of transparency and immutability in the current charity infrastructure. Globalized, international charities could soon be rendered obsolete as small regional charities can accept donations in cryptocurrency minus the unnecessary regulatory, legal, and financial overhead.
According to Bloomberg, blockchain is coming for the charity industrial complex. Decentralized charity models built on DLT and only accepting and spending cryptocurrency are the way forward. Coins 4 Clothes are the worlds first crypto charity and are setting an example. It is once again a decentralized and non-interventionist solution that is having the greatest impact on the lives of everyday human beings.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.