Cryptocurrency is often thought of in future terms. The digital coins are viewed as the potential future of money, as a way to help move the global economy forward in new and innovative ways, entrepreneur Matthew Sgherzi says.
And while there are still those who are skeptical about the role of cryptocurrency, there’s no denying the immense power of blockchain technology in terms of what it can do for good.
As Matthew Sgherzi says: “In every field in life where you can make a positive change, you can choose to be a conduit to make that same positive change in others’ lives, as well. Web3 and cryptocurrency are no exception.”
“While the mainstream media would have you believe cryptocurrency is all about Lamborghinis and fancy homes, the truth is that others are being lifted out of the depths of despair by those of us who have been rewarded for taking the biggest risks in an emerging sector.”
There are many ways in which cryptocurrency can have a powerful role in the future of philanthropy and social impact.
Donations Around the World
One of the biggest benefits of cryptocurrency is it allows people to circumvent the many barriers in place to prevent cross-border financial transactions. In many ways, it can be difficult to make donations to organizations in other countries.
Wiring money to an entity in another country, for instance, could take a long time, be very expensive and require banks to make currency adjustments.
With cryptocurrency, those hurdles are removed. People are able to make charitable donations to any organization around the world, which ensures that the aid that is desperately needed is delivered effectively and quickly.
This could prove especially valuable in times of crisis. When natural disasters hit, cryptocurrency can enable much-needed donations to arrive where they are needed almost instantly.
Boosting Developing Nations
Developing nations often have trouble accessing traditional financial services, if only because there aren’t many conventional banks located in all regions. This presents a very real challenge for non-profit organizations.
Cryptocurrency helps to overcome those challenges. Since no middleman is needed to access the funds, nonprofits are empowered and able to participate more readily in the global economy.
As Matthew Sgherzi says: “This sector is more than just buying and selling for a profit. The entire space is built upon a distributed ledger blockchain technology that is decentralized and trustless.”
“This technology democratizes and allows users to take control of their financial destinies. It should be no surprise that nonprofits are effectively leveraging this same technology to enhance their charitable efforts.”
Blockchain technology and these digital currencies actually provide for a much more inclusive financial environment than traditional currency.
Ensuring Transparency
Unfortunately, there are a lot of opportunities for fraud and ill-will in philanthropy. Some people are hesitant to make donations because of past stories about non-profits misusing and/or misappropriating the funds they receive.
Blockchain technology helps to engender trust with donors because it ensures accountability and objectivity. The blockchain technology that cryptocurrency provides complete transparency.
Donors are able to verify and track the donations they make, which holds the organizations to which the donations are made accountable to their mission.
Lower Costs
There are always costs of doing business, even with non-profit organizations. There are administrative fees and salaries that they have to pay for the workers who make things happen.
Cryptocurrency can help to reduce some of these administrative and overhead costs that are related to traditional banking. When organizations use crypto instead of traditional currency, they’re able to receive a larger percentage of the funds, rather than having to subtract fees for receiving money and then putting it to use.
This aspect of cryptocurrency also makes it more likely that people will donate, since they know that most of their money is actually going to make a difference.
About Matthew Sgherzi
Matthew Sgherzi is an entrepreneur with a knack for trendspotting. Holding a degree in Information Systems from National University, he is known for navigating emerging trends ranging from Amazon FBA to cryptocurrency and Web3 technology.
Sgherzi is also dedicated to philanthropy and public service, serving as a previous Elder and current IT Administrator at his community Church and supporting the James Project in Central America. Matthew’s contrarian approach sets him apart in the entrepreneurial landscape, consistently capitalizing on emerging opportunities.
