Crypto Philanthropy Outlook in 2022
Written by EmergentX Insights team
February 26, 2022 | 1 Min
Highlights
- 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
adoption.
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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