UNICEF, the United Nations’ charity for children has announced that they will accept donations in cryptocurrencies like Bitcoin and Ether. The UNICEF provide aid to the children around the world, UNICEF is not the first charity agencies that are accepting donations in cryptocurrencies, before this, the UN World Food Programme and the American Red Cross also accept donations in cryptocurrencies.
However, it is the first organization of the UN that will do transactions through virtual currencies. UNICEF has also founded the virtual currency fund and in this way they are able to do get, hold and spend the donations. When the donations are made to UNICEF in virtual currencies they will not exchange it in fiat currency instead they will spend it on the charitable cause in the form of Bitcoin and Ether.
This process will make the transferring of funds more transparent and this will also ensure that the people in need will receive a large amount of money. Still, one problem is there that the virtual currencies are famous for their instability of price, so the problem might occur when the donation and spending of cryptos time will differ. To solve this issue the UNICEF will only purchase short-period programs like buying mosquito nets or to stop the Ebola and sending food and water to the regions struck by famine through the cryptocurrencies.
Principal adviser at UNICEF Innovation, Christopher Fabian said,
“We see this as a piece of learning that we need to go through to prepare for the next decade.”
“There’s an interest in speed and efficiency.”
“We have a good capacity to move money globally, but there’s always friction,”
Fabian said. The Ethereum Foundation will the first to offer the contribution to the virtual currency fund of the UNICEF. This contribution will profit three grantees of the UNICEF Innovation Fund and it will also profit the ‘GIGA’, an organization of the UNICEF which is functioning to connect every school to the internet services.
The Executive Director of the Ethereum Foundation, Aya Miyaguchi said,
“The Ethereum Foundation is excited to demonstrate the power of what Ethereum and blockchain technology can do for the communities around the world. Together with UNICEF, we’re taking action with the Cryptofund to improve access to basic needs, rights and resources.”