The UNICEF recently announced the creation of a cryptocurrency funding program to which organizations and individuals could make donations in the form of digital assets.
The original announcement revealed that the fund would support open source technology for children all around the world and would support Bitcoin and Ethereum donations. The cryptocurrency fund actively collaborates with UNICEF Australia, UNICEF USA, UNICEF France, and UNICEF New Zealand.
Only a week later, the organization discloses that the fund would keep the donations in their original cryptocurrency form and would not be converted into fiat. The decision shows that the UNICEF believes in the long-term future of the new disruptive digital asset class.
As a reminder, the Ethereum Foundation was the first organization to make a contribution to the fund. Commenting on the $100,000 donation, the executive director Aya Miyaguchi stated that the Foundation is excited to show the world the benefits of blockchain technology and Ethereum.
Additionally, Miyaguchi stated that the Ethereum Foundation works closely with UNICEF in order to provide better access to basic resources and rights. The beneficiaries of the donations were three blockchain companies, Prescrypto, Utopixar, and Atix Labs, who focus on developing a blockchain-based solution that would help with prescription tracking.
UNICEF is one of the few major organizations that actively adopt blockchain technology and cryptocurrencies. In a discussion with the government of Kyrgyzstan, UNICEF created an initiative called ‘Project Connect’, which seeks to deliver internet access to schools with the help of blockchain technology.
Furthermore, the organization under the UN made a $100,000 donation last year to six startups that focus on blockchain technology. The startups in question focused on solving global issues such as financial management and healthcare delivery transparence.
At the time of writing, it is not yet revealed why UNICEF made the decision to keep the donations in their original form. However, the organization may seek to keep the cryptocurrencies as the assets may increase in value during the next bull run, which is expected to occur shortly following the Bitcoin halving event set for May 2020.
Cryptocurrencies find a new real use case
Cryptocurrencies may not be developed enough to be adopted in a number of industries at mass scale, however, the new digital asset class can be potentially adopted as a payment method for donors. Due to the transparent feature of blockchain networks that allow everyone to track transactions, organizations and individuals who donate to funds could make use of the feature.
One of the common problems when it comes to donations is that a majority of the assets are not rightfully used for their purpose. In that regard, cryptocurrencies would make donations fully traceable, removing any possibility of errors or frauds.