October 27, 2023
By Anjali Kochhar
In the ever-evolving landscape of cryptocurrency and the emergence of WEB 3 communities, a groundbreaking initiatives known for benevolent effort has taken center stage. These humanitarian projects represent a novel application of blockchain technology, ushering in a new era in fundraising and charitable efforts.
According to Mr. Vikram Subburaj, CEO, Giottus Crypto Platform:
“The emergence of crypto aid initiatives underscores the transformative potential of blockchain and crypto assets in the realm of humanitarian fundraising. By harnessing the power of decentralized finance, these platforms offer a new paradigm of borderless, transparent, and highly efficient fundraising. They empower donors and beneficiaries alike to make a global impact, transcending geographic constraints and sidestepping the challenges often posed by traditional banking systems, especially in conflict zones. This innovative approach to charitable giving promises a host of benefits. It operates independently of national borders and bureaucratic hurdles, enabling swift and secure transactions. In doing so, it’s revolutionizing the landscape of fundraising, making it quicker, more cost-effective, and highly efficient.
“However, it’s essential to tread carefully. While the potential of crypto-based fundraising is vast, it’s critical to lay the groundwork by establishing robust regulatory frameworks and addressing compliance concerns. This will ensure a secure and well-regulated environment for crypto-powered humanitarian initiatives. Responsible management is key, as crypto assets are unique in that they rely on cryptographic security, and they should only be directed to reputable organizations. This ensures that the benefits of crypto-aid reach those in need while minimizing the risk of misuse. With these measures in place, crypto-based fundraising can indeed be a game-changer, amplifying the positive impact on humanitarian causes worldwide.”
Beneath this paradigm-shifting endeavor, several situations come to the fore, offering a profound glimpse into the transformative power of cryptocurrencies in the realm of humanitarian aid.
Crypto Aid for the war-hit areas
The funds accepts donations in bitcoin (BTC), ether (ETH), USDT, and USDC, to support those who have been displaced due to the ongoing war between Israel and Hamas with humanitarian aid like food and shelter to Palestinian and Israeli nationals. A number of Israeli banks have volunteered to act as a bridge and move these cryptocurrencies to banks.
“We hope to raise the necessary funds to provide food and shelter for families who lost their homes. We are also hoping to provide hygiene and medical products for the bombarded Israeli civilian populace and to raise awareness for the horrors the Israeli people are facing right now,” said Mr. Ben Samocha, CEO of CryptoJungle.
Bridge Between Cryptocurrencies and Banks and Stakeholder Commitment
Firms like Fireblocks ensure crypto safekeeping, have stepped in to manage these crypto assets, and have enforced a stringent policy requiring a majority of signatures (five out of seven) to authorize fund transfers from these accounts.
The involvement of prominent entities such as MarketAcross, Collider Ventures, CryptoJungle, and the Israel Blockchain Association highlights the commitment to the cause.
Cryptocurrency and Geo-Political Dynamics
The Israel-Hamas conflict has highlighted the crypto market’s resilience in the face of global geopolitical uncertainties. Insights from industry experts shed light on the potential impacts of the conflict on cryptocurrency prices, mining processes, and the broader global investment landscape.
Mr. Manhar Garegret, Country Head, India and Global Partnerships at Liminal, a wallet infrastructure and custody solutions platform, said: “The crypto market is driven by multiple factors and the global geo-political situation is one of them. Since the start of the Israel-Hamas conflict, we have not witnessed any significant fluctuation in the prices of digital assets but things may look different in the short to mid-term. Israel is an active player in crypto.
Mining and any disruption in the mining process may result in a sharp rise in Bitcoin hash rate. Any increase in BTC hash rate could have a direct impact on its price in the short term.
“Furthermore, in the case of the Israel-Hamas conflict, if it contributes to a broader sense of global uncertainty, it could potentially drive some investors towards assets like Bitcoin, which is often referred to as “digital gold” and is considered by some as a store of value in times of economic uncertainty.”
“Outside of crypto markets, what was more notable though, was that the Israel-Hamas conflict showcased the ability of intelligence agencies to identify and restrict terrorist-owned digital asset wallets. By using Blockchain analysis Israel intelligence agencies showcased a new way of crippling the terrorist by cutting off their funding resources. Hamas terrorists launched campaigns on social media to raise funds through crypto and Israel, known for its tech expertise, blocked the crypto accounts used for Hamas funding. The accounts used for illicit activities were easily identified with the help of support from popular exchanges like Binance and immediate action was taken by law enforcement agencies resulting in one of the biggest financial assaults on Hamas terrorists.”
Decentralized Finance and Borderless Impact
By harnessing the power of decentralized finance, these platforms offer a new paradigm of borderless, transparent, and highly efficient fundraising. They empower donors and beneficiaries alike to make a global impact, beyond a country’s borders and overcome the challenges faced due to traditional banking systems, especially in conflict zones.
As it is well known that cryptocurrency cannot be traced, it is imperative to tread carefully. While the likely uses of crypto-based fundraising are humongous, it’s critical to set up laws and establish robust regulatory frameworks that can address all the compliance concerns. This will ensure a secure and well-regulated environment for crypto-powered humanitarian initiatives.
Responsible management is key, as crypto assets are unique in that they rely on cryptographic security, and they should only be directed to reputable organizations. With these measures in place, crypto-based fundraising can indeed be a game-changer, amplifying the positive impact on humanitarian causes worldwide.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.