Brian Armstrong, CEO and founder of the US cryptocurrency exchange Coinbase, has unveiled another one of his ventures – a crypto-based charity that will help people in third world countries. The non-profit initiative, dubbed GiveCrypto, will accept donations from crypto owners in the form of BTC, ETH, BCH, LTC (virtual currencies available on Coinbase) as well as XRP and ZEC.
The donations, received in digital currencies will then be divided into smaller amounts and distributed across the globe, specifically aimed at emerging countries, currently undergoing through various crises. Mr. Armstrong stated that at least initially, the impoverished will be aided by direct-cash transfers of cryptocurrencies.
According to him, “An increasing body of evidence shows direct-cash transfers are a very effective form of giving, as they increase people’s income, boost food consumption and dietary diversity, and are tied to improved school attendance, health care visits, household savings, and investments in productive assets.”
The first goal, set by the fund’s founder is to accumulate $10 million in donations and $3.5 million has already been secured, most of it coming from Armstrong himself via a $1 million donation. Other notable donors include Ripple co-founder Chris Larsen, Ripple CEO Brad Garlinghouse and Zcash CEO Zooko Wilcox. The long-term goal of Give Crypto is ambitious – growing the fund to $1 billion by the end of 2020.
Mr. Armstrong added that, “Many who invested early in cryptocurrencies understood it could make the financial system more efficient, lower fees, and reduce transaction times. […] And almost everyone I met in the community early on believed cryptocurrency could finally bank the unbanked of the world—the billions of people who are locked out of the financial system and trapped in poverty as a result.“
Writing in the official Medium post, the crypto entrepreneur elaborated on how most people of the people in developed economies take financial services for granted. However, over 1.7 billion adults worldwide do not have an account at a financial institution. The situation among that segment is especially dire for women who are “disproportionately excluded from the financial system.“
Initially, some donated funds will be used to launch and maintain starting operations but eventually a structure where 100% of donations go straight to those in need is planned. Recipients of the donations will be able to either exchange the digital currency into fiat money or keep them in crypto. The fund also plans to hire “crypto ambassadors” who will teach the recipients on how to use crypto wallets.
Armstrong concluded by saying that, “I’m passionate about unlocking the potential in cryptocurrency. When I first read the Satoshi Nakamoto white paper for bitcoin, I realized it represented an opportunity to bring economic freedom to people all over the world.“
Just in case you have extended experience with non-profit organizations, fundraising and hiring and managing a team, GiveCrypto is still looking for an Executive Director. We reckon the competition will be quite fierce for this one.
Image Source: “Flickr”