From $125 million in 2022, the total crypto donations collected by major US charities reached $2 billion in 2024. This boom was sparked when 2 of the three largest charities started accepting crypto donations. crypto donations. This openness to cryptos has allowed them to expand their donor base, making them important players in adoption.
The largest US charities are opening up to cryptos
Cryptocurrency donations are starting to go viral. A year ago, crypto donations collected by US charities were $125 million. Who would have imagined that the country's two largest charities would raise over $2 billion in crypto donations this year alone? But it's what TheGivingBlock revealsa platform that facilitates crypto donations to charitable organizations.
According to TheGivingBlock, this explosion comes from the fact that several charities have started accepting crypto donations. This allowed them to expand their donor base and increase their fundraising capacity. These include Save the Children, World Vision International, Water Aid US and the American Red Cross.
Jonathan Merry, CEO of BanklessTimes, also indicates that there is now a wave of crypto-rich individuals eager to invest their cryptos in charity. This choice above all reflects the evolution of philanthropists' confidence in cryptocurrencies and confirms the convenience and practicality of crypto transactions for donors.
Challenges linked to the boom in philanthropic donations
According to the data, USDC was the most used cryptocurrency for charitable donations in 2022. For this year 2023, the cryptocurrency maintained its place. USDC was however followed by ETH which came second on the list, closely followed by BTC. But while crypto transactions have proven more convenient for American charities, they are not without their challenges.
The latter must in fact protect themselves against the risks of financial losses, because the nature of cryptocurrencies exposes them to cybersecurity risks. They must also resolve the complexities of regulatory landscapes which vary from one jurisdiction to another. Added to this are the requirements for compliance with AML laws and KYC checks in different jurisdictions.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
