The lack of transparency in regards to crypto-based charity donations has been raised as an issue within the world of cryptocurrencies. But it seems a solution is now just around the corner as Binance has offered to come forward with a solution.
CEO of Binance, Changpeng Zhao, spoke of his company’s aims to ensure that the global charity sector will be a significant focus of Binance’s team. According to Zhao’s announcement, this means the ICO’s charity arm will now take responsibility for designing and funding a clear crypto-based charity donations solution. The major goal of this system will be to guarantee to the donors the arrival of crypto-donations into the hands of the intended charity the crypto was sent.
His announcement came in Geneva where he attended the UNCTAD World Investment Forum 2018, which was held in the city’s prestigious UN office.
Companies present included the likes of IBM, which recently announced its Food Trust solution that in part will help to enhance fair trade within the food retail supply chain sector. Other big name companies joining Binance and IBM at the forum included Bancor and Zhao, plus there were government representatives of the European Union present.
Binance Recently Raised $410,000 For The West Japan Flood Disaster
During his speech, he also highlighted the fact that Binance is already involved in charitable donations. He gave the ICO’s most recent successful cryptocurrency charity fundraising event on Twitter in which $410,000 worth of cryptocurrency was raised to help victims of the ongoing problems with flooding in West Japan.
Zhao claims that every donation made used blockchain tech to log donation and the system used was fully transparent giving donor piece of mind. The system supports donations made in BTC, ETH, and Binance’s native BNB Coin with support for more cryptocurrencies soon to be added.
Built into the system are four layers that track the donations. On each layer information pertaining to the donor, beneficiaries, charity programs, and charity partners are held. All transactions between these layers create an immutable record if the transaction so anyone that wants to investigate where the donation ended up, it will be there in black and white on the Binance ecosystem.
The ICO used this exact system to achieve its close to half a million dollar feat to raise money for the Japanese flood situation in just 7 days. This just goes to show how well Binance has integrated its charity focused blockchain solution within this sector. It also makes the company the ideal candidate to become a pivotal force behind the drive to encourage more people to make donations using cryptocurrencies instead of fiat currency.
Why Has Binance Stamped Its Authority Over The Crypto Charity Sector
One of the reasons Binance is pushing forward its plans to create a global crypto-based charity solution is to fulfill the ICO’s ambitions to become the world’s number one blockchain ecosystem. At the same time, it has to be said that the Binance framework is also the perfect solution for solving the problem of transparency for those that wish or prefer to make charity donations using cryptocurrency.
Binance’s ecosystem has been designed to solve the simple underlying issues of accessibility and transparency. Its system is well renowned for its ability to move funds quickly from A to B using blockchain tech to create a permanent and indisputable record of the transaction.
With many government officials also present at the forum, Zhao was almost advertising the fact that the using blockchain technology within the charity donations will eradicate corrupt fundraisers and individuals within the sector. Although he did not directly say this, the system could be the answer to putting an end to situations like the one we saw in New Orleans when billions in donations were siphoned off.
It means corrupt officials involved in charity fundraising will find it difficult to defraud the system and those that do will be held accountable. In the end, more money will end up in the hands of the charities helping to make our world a better place.