The sharp growth of cryptocurrencies in recent years has raised various issues for philanthropists, governments, non-governmental organizations, businesses, and investors that require a reliable, tech-savvy response to the ebb and flow of financial innovation. By 2023, it is predicted that the world will spend up to $15.9 billion on blockchain-related technologies, which will demonstrate the growing integration of cryptocurrencies into everyday life.
As for philanthropists and occasional donors, donations in cryptocurrency are not subject to capital gains tax, which makes them an attractive option for many rising millionaires or long-time philanthropists.
The question then becomes how the financial world is evolving along with these people's preferred charitable habits, requiring a deep sense of trust, seamless integration with existing technology, and flexible donation options for a wide range of donor profiles. Partnering with organizations that exist in the cryptocurrency space, advocating smarter platforms for charitable donations, and simplifying access for the creation of charitable foundations are key components of this new era of philanthropy.
Despite the fact that cryptocurrency is ready to empower both donors and the charities they want to support, non-profit organizations are struggling for digital transformation, making cryptocurrency donations a wasted opportunity that NGOs cannot afford. In the midst of the pandemic, the Infoxchange Group released a report detailing the struggles of technology-reliant non-profits. Although 97% of charities faced disruptions due to COVID-19, only 30% of organizations had the technology to support remote work, demonstrating the digital delay that many cryptocurrency donors will have to overcome when transferring funds to their preferred institutions.
