The recent donation of $3 million in Binance Coin (BNB) by Binance Charity to aid victims of the Morocco earthquake has ignited a debate on the role of cryptocurrencies in humanitarian relief efforts.
Critics have questioned the practicality of crypto donations during emergencies, arguing that immediate essentials like food and water are paramount.
However, the CEO of Binance, took to social media to provide insights into Binance Charity’s approach.
CZ addressed the criticisms head-on, acknowledging the importance of food and water. He explained that Binance Charity has a history of providing essential items, but these efforts take time to organize. In contrast, cryptocurrency transactions are fast and efficient.
Binance Charity adopts a dual approach to disaster relief, combining the provision of essential items with direct access to funds through crypto-based donations.
However, concerns have been raised about the exclusivity of crypto donations, primarily benefiting existing Binance users.
CZ defended this focus on existing users, highlighting their familiarity with crypto wallets and conversion processes. He likened a non-crypto person dismissing crypto as not being real cash to a blind person dismissing the usefulness of lights.
The advantages of crypto-based donations include speed, transparency, and accessibility. BNB Chain transactions are nearly instantaneous, providing a level of clarity that traditional financial transactions struggle to achieve.
Additionally, these digital assets can be converted into various local currencies worldwide, enhancing versatility in crisis response.
In response to the Morocco earthquake, Binance Charity chose to airdrop up to $3 million worth of BNB directly to Moroccan users.
However, the organization recognizes the importance of traditional aid and pledges to collaborate with local organizations. All funds raised from the public will be donated to a local charity in Morocco, in addition to direct donations to users.
While acknowledging that their reach is limited to their user base, Binance Charity argues that assisting their users is meaningful, especially considering the long-term economic impact of the earthquake on the entire country.
Blockchain’s transparent and efficient ecosystem ensures that a significant portion of donations directly benefits those in need.
Despite facing criticism, Binance Charity remains committed to refining its approach based on data and feedback from experts.
They view complaints as opportunities for improvement and express a willingness to engage with humanitarian experts to enhance their initiatives.
Ultimately, Binance Charity’s goal is to leverage technology to empower individuals and communities for sustainable development. They see immense untapped potential in blockchain for achieving this mission.