UNICEF debuted something rather interesting as the organisation is embracing technology by starting its own Cryptocurrency Fund. This shouldn’t be confused with Libra, as UNICEF is not getting into making its own coin, but rather accepting popular cryptocurrencies for donations.
“Under the structure of the UNICEF Cryptocurrency Fund, contributions will be held in their cryptocurrency of contribution, and granted out in the same cryptocurrency,” the organisation explained.
“This is a new and exciting venture for UNICEF. If digital economies and currencies have the potential to shape the lives of coming generations, it is important that we explore the opportunities they offer. That’s why the creation of our Cryptocurrency Fund is a significant and welcome step forward in humanitarian and development work,” adds Henrietta Fore, UNICEF executive director.
Bitcoin and Ethereum are the two main currencies being supported by the Fund, with UNICEF adding that contributors will be able to see how their donations will be used, which is thanks to the digital ledger technology powering things behind the scenes.
Furthermore when UNICEF receives a donation in a given crypto, it will not cash it out in the currency of the nation one of its affiliates operate in. Rather it will hold onto the crypto, and give it directly to the affiliate should they utilise the same mechanism.
For those worried about the volatility of cryptocurrencies, which has been well documented, UNICEF says it will only use these digital donations for short-term projects, such as purchasing and distributing mosquito nets, along with sending food and water to areas in need.
While we’ve seen many companies use crypto for dubious applications in the past, this is one initiative that holds some significant merit. In the coming months and years, it should prove interesting to see how much good the fund can do.