Philanthropy holds a significant place in everyone’s lives. The cryptocurrency space was initially established with the goal of delivering financial freedom. As it has expanded remarkably, numerous platforms have harnessed digital assets for charitable causes. Today, it appears that crypto has risen to prominence as a favored option among many philanthropic individuals.
In a recent survey commissioned by Binance, 32% of the participants expressed cryptocurrency as their preferred method of donation. This survey encompassed the views of 1,126 individuals, including both Binance users and the broader public. However, it is important to note that conventional methods such as cash, checks, and credit cards continue to dominate, representing 43% of the preferred modes of donation.
The latest change in choice underscores the increasing recognition of crypto as a legitimate and powerful tool for supporting philanthropic initiatives. It emphasizes the profound influence that blockchain technology is exerting on the realm of charitable contributions.
Why are crypto donations on the rise?
Transparency: A substantial 37% of those surveyed commended blockchain for its transparency. The inherent nature of blockchain ensures that each transaction is traceable and verifiable, thereby bolstering trust and accountability in charitable contributions.
Efficiency and Cost-Efficiency: 32% of respondents valued the efficiency and cost-effectiveness brought by blockchain technology. Donations conducted through blockchain can notably reduce administrative overhead and transaction expenses, allowing a larger proportion of funds to directly benefit the intended recipients.
Accountability: 28% of survey participants acknowledged blockchain’s capacity to enhance accountability. Utilizing blockchain, the entire journey of funds becomes traceable, providing a verifiable record from the donor to the ultimate beneficiary. This heightened level of accountability provides donors with assurance that their contributions are being utilized in line with their intentions.
So which is the most preferred crypto for donations?
The 2023 Crypto Philanthropy Annual Report disclosed a noteworthy shift in the landscape of crypto donations. For the first time, USD Coin [USDC] emerged as the top choice in 2022. In fact, It represents 44% of the total donation volume. Ethereum [ETH] secured its position as the second most favored cryptocurrency, constituting 24% of the donations, with the surge attributed to NFT fundraisers. Meanwhile, Bitcoin [BTC] slid to the third spot, accounting for 17% of total donations, trailing behind Ethereum for the second consecutive year.
As seen in the above chart, most of the donations were made to Ukraine. Mental health was also a popular donation choice for the community.