More and more charity organizations in the US are moving towards blockchain and bitcoin for donations to alleviate any doubts around transparency and traceability of the funds, reports have emerged.
The move towards blockchain and bitcoin was evident during the aftermath of hurricane Irma that left survivors vulnerable, with no access to clean water, food, and shelter. Communities and charity organizations quickly rose to the occasion, donating cash and bitcoin.
Charities opted for bitcoin this time around as a result of several scandals and calls to transparency that were made by those making donations to these charities. Thanks to blockchain and cryptocurrency, charities are now able to show their transactions that are recorded in the form of unalterable public ledger distributed across hundreds of thousands of computers for anyone to see and verify.
Grace Token is one such charity organizations that has its processes based on blockchain. The organization’s founder Michael Yeun said that donations using fiat currency can’t always be linked to each and every spending, but now using blockchain they are able to specify a time or conditions for each donation.
Bitcoin enables donors to easily see where their donation goes to after it leaves their wallet as it is tracked through the blockchain. This tracking mechanism is ushering a new era of transparency for both donors and charity, deepening their connection to humanitarian causes by providing them with a tool to see how their donations are being used.