Philanthropy is often difficult to succeed due to lack of exposure and transparency, unclear accountability issues, and limited channels for accepting donations. Digital charity (using blockchain technology to promote charitable donations) provides a new solution. In the case of decentralized transactions, charitable organizations can receive donations and raise funds more efficiently.
The point is that we can clearly know the flow of Bitcoin so that we can monitor the use and destination of charitable donations, because some charities are not trustworthy.
But I will not reject the many advantages of this approach.
The potential value of digital philanthropy
Digital philanthropy has some notable advantages for charities and donors:
Complete transparency: every digital currency transaction is traceable through blockchain data. Such a high degree of transparency and openness can encourage donors to donate, and it can also greatly improve the credibility of charities.
Globalization and decentralization: Most blockchain networks are highly decentralized. They cannot rely on a centralized government and institution to operate. Therefore, donations can be transferred directly from donors to charities . The decentralized nature of the blockchain makes global transactions simple and reliable.
Digital protocol: Blockchain makes the sharing and storage of electronic data easier, and it can also be used to ensure that important documents and contracts cannot be tampered with at will.
Reduce expenses: Blockchain technology has great potential to simplify the management of charities, automate operating procedures and reduce intermediary costs.
Reduce taxes: Take an American donor as an example. If he donates a charity fund in Bitcoin, the charity can get the full amount (because there is no need to pay taxes). In addition, donors can also apply for high tax relief from government agencies.
But in other words, I personally would not accept some of the illegal proceeds of hackers for charity.
What do you think of this problem? This is just an example of our lives. Bitcoin will be used more and more widely, but the same freedom is relative, and we must actively respond.
No charity should be allowed to accept the proceeds of criminal transactions if they can be clearly identified. They are subject to the same laws and forfeitures as any other entity. I don't really know of many charities that will accept cryptocurrency donations and this is probably the reason, they don't want to become liable at some later time for the actions of some bad actors. It could also make the whole charity system vulnerable to abuse like money laundering if it was ignored and no government is going to accept that. It seems like the answer is pretty clear, regardless of who it was stolen from (funds often get intermingled in many places) it should be given back to the correct owners, it is not for the charity to decide otherwise if they know about it.