The United Nations International Children’s Emergency Fund (UNICEF) has become the latest in a long list of charities to accept payments in Bitcoin. It will also accept Ethereum donations.
UNICEF partnered with the Ethereum Foundation for the purpose of this endeavor, and the Ethereum Foundation has already made a donation. The Bitcoin price is currently at the $8,000 mark, however, it could experience a breakout in the near future.
According to an October 8 press release, UNICEF will accept both BTC and ETH. What is more significant is that it will not convert the funds to fiat currency. It will disburse funds to those in need using cryptocurrency. The funds will not be transferred back into the existing fiat network, which is what national governments and banking authorities use to maintain control over the populace. Commenting on the decision, UNICEF executive director Henrietta Fore stated:
“If digital economies and currencies have the potential to shape the lives of coming generations, it is important that we explore the opportunities they offer. That’s why the creation of our Cryptocurrency Fund is a significant and welcome step forward in humanitarian and development work.”
Bitcoin has already been used to assist those that are without a home and do not qualify for a bank account. A Bitcoin wallet can serve as a personal bank account for such people, and children can be given Bitcoin as a gift at an early age so that they become familiar with a purer form of finance.
Children in impoverished regions around the world might have a better chance to survive if they become familiar with such technology at an early age. Crypto is practically free to transfer, and instantaneous.
Cryptocurrency has a long list of benefits when it comes to charities. Recently, charities have gained a bad rep due to scandals, such as CEOs and other managers stealing funds from users and so on. With transactions automatically recorded on a blockchain, this is far more difficult to do. Any funds that are withdrawn can be observed and queried.
Another benefit is that it will make charities far more efficient. Up to 90% of donated transactions are often wasted on the running and administration of the charity organization. However, much of this expense is related to the management of funds and accounting. There are also many banking fees levied on the transfer of funds.
But with Bitcoin, there are no fees and no wait times. It will make charities far more efficient. UNICEF is also cutting out Bitcoin payment processors such as Bitpay, who can sometimes halt transactions and can also take a small fee (1% or so), much akin to banks and fiat payment processors.
With the continued acceptance and adoption of Bitcoin, it could easily result in a Bitcoin price increase. This is what happens as adoption and awareness continue to grow. The adoption is actually more important than the Bitcoin price itself, as it will lead to a move away from centralized corruption and a step towards financial freedom.