The Blockchain aims to alleviate poverty rather than cover it up

The blockchain makes a major contribution to the long-term development of the poorest in the world. A growing list of non-profit organizations is looking to crypto to aid in the reduction of global poverty. The new possibilities made possible by Bitcoin & other crypto assets provide utility to the unbanked and countries faced with crises.

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Here are four examples of how crypto and poverty alleviation are interacting:

GiveCrypto

GiveCrypto is a non-profit that connects cryptocurrency and world poverty alleviation. Because the operating costs are currently covered by the founding members, all funds collected by GiveCrypto are distributed to the recipients. While Bitcoin is the most well-known cryptocurrency, GiveCrypto also accepts payments in Bitcoin Cash, Litecoin, Ethereum, XRP, and Zcash. GiveCrypto was founded on June 20, 2018, and has so far raised $4 million. The founders hope that GiveCrypto will help individuals who are struggling in their communities. However, they also intend for GiveCrypto to help these communities' economies grow. As a result, the organization's ultimate goal is "to help spark economic growth by providing access to property rights and financial services on an open network."

CareBit

The CARE coin was created specifically for charitable purposes by the founders of CareBit. CareBit is a cryptocurrency in its own right, as opposed to GiveCrypto, which is merely a platform for distributing various types of cryptocurrency to those in poverty or financial distress. The CARE coin's development aims to strengthen the link between cryptocurrency and poverty alleviation. CareBit is the only independent charity that is currently using blockchain, a technology that records and decentralizes transactions. By directly implementing a charity model into the blockchain, CareBit is able to track down transactions and ensure that 100% of each donation reaches its intended recipient. The ultimate goal of CareBit is to increase transparency while reducing fees, corruption, and fraud in any given transaction.

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BitGive

BitGive, Bitcoin's first non-profit organization, was established in 2013. BitGive works with a variety of international and local charities, including The Water Project, Medic Mobile, and Save the Children. BitGive, like CareBit, integrates its charity directly into the blockchain to track donations and improve efficiency. BitGive also makes use of the blockchain technology GiveTrack to track and share financial data in real-time. Donors can use GiveTrack to track their donations and ensure that they reach their intended recipient. Another advantage of BitGive is the significantly lower processing fees. Processing fees account for 3.61 percent of donations received by the average nonprofit. BitGive, on the other hand, charges less than 1% of all donations.

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Binance Charity Foundation

Binance Charity Foundation (BCF) is the charitable arm of Binance Exchange. BCF uses Binance Coin to integrate cryptocurrency and poverty alleviation. Unlike the nonprofits mentioned above, which are concerned with reducing financial poverty, BCF is concerned with improving the overall health of women in developing countries. For example, BCF recently partnered with 46 other organizations to provide a one-year supply of personal hygiene products to up to one million women. Women will use the Pink Care Token (PCAT), a redemption-only token on the Binance blockchain, to purchase these sanitary products.

The combination of cryptocurrency and poverty-reduction projects reflects the growing demand for better-donating systems in response to a lack of trust in how charities spend their funds. As a result, the increased transparency provided by cryptocurrency via blockchain's traceability feature may reassure donors and encourage them to donate. However, it is unclear whether cryptocurrencies will become influential enough to directly strengthen the economies of the developing world.

Economic Inclusion

The potential for technological advancement in the field of reducing poverty is expanding with the advancement of bitcoin technology and other coins. It is crucial to structurally support market economies because over 1.3 billion people are threatened by poverty worldwide.

Although there is a great deal of doubt about how volatile and unpredictable blockchain technology is, it can still be a novel and imaginative way to address world poverty, especially in less developed economies.

With blockchain technology, over 2.5 billion people will soon have improved chances and access to financial and banking services, which is a crucial U.N. Sustainable Goal. This is especially true given that blockchain technology permits a more decentralized digital ledger. Blockchain technology will become extremely useful in more isolated, rural areas of the world, especially when it comes to boosting social mobility.

Given its decentralized structure, blockchain technology has the potential to function as a central financial institution. Due to the high transaction costs associated with traditional banking systems, it can aid in reducing remittance fees. South Asian nations collectively spend around $4.32 billion on these fees. Blockchain technology facilitates remittances for citizens of nations like India with sizable immigrant and expat populations who reside abroad. Using virtual currencies can save expenses and increase transactional efficiency. They can also be considerably more stable than the financial system, which is susceptible to regional and global economic downturns.

Additionally, it could be simpler to establish property rights and make safe investments. In a safe setting, buyers and sellers can communicate while keeping track of transactions and fraud. A handful of countries, including Brazil, India, Rwanda, and Georgia, have established land prosecutors as a result of rising property ownership. Due to low-interest rates on loans, consumers have more options to engage in trade, lending, and microtransactions as financial inclusion increases. This may also increase the likelihood of starting new firms and enterprises.

Enforcing accountability and combating graft

Information and transactions are far more secure thanks to blockchain technologies, like Bitcoin, which are dependable. On a macroeconomic level, individuals can direct taxes, credit, and resources far more effectively. Additionally, this can enhance the transparency and accountability of crucial public monies.

Numerous blockchain projects have been adopted by various nations worldwide in the healthcare and education industries. Governments might thus take advantage of the chance to give monies to various economic sectors, and potentially even expand it to include giving development assistance and funding to enhance social welfare, infrastructure, and other services. Similar to how it is simpler to offer insurance to consumers in important areas owing to openness. For example, the Copenhagen-based SPACE10 started a project that aims to integrate solar energy and blockchain technology because regulated sources and off-grid technologies are frequently not financially and cost-viable.

The advancement of blockchain technology may potentially increase the security and dependability of charitable giving and philanthropic endeavors. Using this paradigm, nonprofits and foreign organizations might be able to access new sources of funding, assistance, and other services.

In order to avoid a lack of knowledge and financial hazards, it is vital to go beyond the necessary education and awareness of bitcoin technology if it is implemented. More individuals are going to join the global economy if there are better financial options and services available. Long-term improvements to blockchain technology can aid in addressing flaws and structural restrictions.