The controversial donation of $3 million in Binance Coin (BNB) by Binance Charity to the victims of the recent earthquake in Morocco has sparked a debate over the role of cryptocurrencies in humanitarian aid.
As reported by the Financial timesSome critics have called it a PR stunt, arguing that victims of such disasters need immediate necessities such as food and water, not crypto.
However, CZ Binance, CEO of Binance, has adopted this X to explain Binance Charity’s approach.
CZ supports the vision of Binance Charity.
CZ outlined some criticisms of Binance’s donation and responded to each criticism. “People need food and water, not crypto. We agree with that,” CZ writes. “Binance has a history of providing essential items. These take time to organize. Crypto is fast.”
According to a recent blog postBinance Charity takes a two-pronged approach to disaster relief, providing essentials in addition to direct access to funds through crypto-based donations. However, criticism has been leveled at the exclusive nature of the donation, as it mainly benefits existing Binance users.
CZ has raised this concern, saying: “We can only reach our users at this speed. We don’t say we can solve all problems, but we do try to help where we can. That’s what donations are.”
The benefits of crypto-based donations stand out in terms of speed, transparency and accessibility. BNB on-chain transactions can occur almost instantaneously, providing clarity that is difficult to achieve with traditional financial transactions. Additionally, they can be converted into most local currencies globally, providing versatility in responding to crises.
CZ also defended the focus on existing Binance users, arguing that they already understand how to manage their wallets and convert crypto into local currency. “A non-crypto person saying crypto is not cash is like a blind person saying lights are useless,” he said.
Binance Charity and the earthquake in Morocco.
In the wake of the devastating earthquake in Morocco, Binance Charity has chosen to send up to $3 million worth of BNB directly to their Moroccan users.
However, Binance Charity recognizes that the role of traditional aid should not be overlooked and promises to continue working with local organizations, with all funds raised from the public being donated to a local charity in Morocco and their direct donation to users.
While Binance Charity argues that it can only reach its user base quickly, Binance Charity argues that helping its users cannot do any harm as the long-term economic impact of the earthquake affects the entire country. Using blockchain’s transparent and efficient ecosystem also ensures that a greater percentage of donations directly impact those in need.
Despite criticism, Binance Charity wants to refine its approach based on data and feedback from experts. It recognizes that complaints provide opportunities for improvement and has expressed its willingness to work with humanitarian experts to make their initiatives more effective.
Ultimately, the charity’s goal is to use technology to empower individuals and communities to achieve sustainable development, and in that regard they see enormous untapped potential in blockchain.
Head of Binance Charity, Helen Hai, said this CryptoSlate by 2022 that Binance Charity will “dedicate 100% of funds to recipients,” a number much higher than most other charities worldwide.
Hai reportedly resigned on September 7, while her X and LinkedIn accounts remain linked to Binance.