Unicef now accepting donations through cryptocurrencies bitcoin and ether
- For aid organisations, cryptocurrencies make tracking donations easier, and have the potential to allow donors to see how their money is used
The UN children’s agency, Unicef, has announced it is accepting and disbursing donations through cryptocurrencies bitcoin and ether.
Unicef’s new Cryptocurrency Fund is the latest in a series of efforts by aid organisations to experiment with “blockchain” currencies, which have the potential to transform charitable giving and increase financial transparency.
Cryptocurrencies are virtual currencies that can be cashed in for real money, and are not linked to any single country or central authority. Instead, a ledger of transactions is maintained by a decentralised network of computers.
This system of decentralisation offers non-profit organisations the advantage of bypassing expensive fees and middlemen traditionally required to move large amounts of cash overseas quickly.
But the virtual currencies have also been divisive. They are associated with huge price fluctuations, and have been previously used as a mechanism to support illicit activities such as money laundering and online drug dealing.