Crypto Philanthropy Outlook in 2022

Written by EmergentX Insights team

February 26, 2022 | 1 Min

  • Crypto-philanthropy has become increasingly popular among digital asset investors
    who have benefitted from wealth creation.
  • The advantages of crypto-philanthropy, such as transparency and cost-effectiveness,
    differentiate it from traditional means of donations.
  • Crypto-philanthropy has been gaining momentum in North America. Innovations such
    as charity tokens and more transparent regulations could drive global market

Core thesis

“Crypto-philanthropy” is poised for further growth and will exist alongside traditional
philanthropy in 2022 and beyond. Digital asset narratives have been fixated on expanding
use cases and appreciation potential. With the tremendous amount of wealth being made in
digital assets and the increasing prevalence of this asset class, we believe crypto-
philanthropy is a logical next step. More charities will accept bitcoin and other digital assets
as donations and increasingly leverage blockchain technology for philanthropic purposes.

Significance and Disruptive Impacts

Blockchain technology helps specific pain points in traditional philanthropy, such as a lack of
transparency on how donations are deployed. Innovative pilots in the emerging crypto-giving
space address the issue of transparency in giving (such that donors can openly track the
flow of donations) and have tax advantages.

Expectation for 2022

  • Charity tokens to become a crypto-philanthropy channel
    Charity tokens help channel the donations directly to the charities without the
    involvement of any third party. It could increase transparency, openness and reduce
    transaction costs.
  • Clearer regulatory framework
    A clearer regulatory environment for crypto-philanthropy, especially concerning
    taxation treatment, could make crypto-giving more prevalent

EmergentX Digital Asset 2022 Outlook

Year of Consilience

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