Binance Charity, the philanthropic arm of cryptocurrency exchange Binance, recently donated $3 million in Binance Coin (BNB) to support victims of the recent earthquake in Morocco. However, this move has faced criticism from some quarters, with skeptics dismissing it as a mere PR stunt and arguing that victims require immediate essentials like food and water, not cryptocurrencies.
In response to the criticism, CZ Binance, the CEO of Binance, took to social media platform X to explain Binance Charity’s approach. CZ acknowledged the importance of providing essential items like food and water, but also highlighted the speed at which cryptocurrencies can be transferred. He stated that while Binance has a history of providing essential items, organizing such support takes time, whereas crypto transactions are fast.
Binance Charity takes a dual approach to disaster relief, providing essential items and direct access to funds through crypto donations. However, some have raised concerns about the exclusive nature of the donation, as it primarily benefits existing Binance users. CZ reasoned that the donation speed could only be achieved for Binance users, emphasizing that donations are meant to help wherever possible, albeit in small ways.
Crypto-based donations offer several advantages, including speed, transparency, and accessibility. Transactions on the BNB Chain can occur almost instantaneously, providing a level of clarity that is hard to achieve with traditional financial transactions. Furthermore, these donations can be easily converted into local currencies, ensuring versatility in crisis response.
CZ also defended the focus on existing Binance users, noting that they are already familiar with using wallets and converting cryptocurrencies into local currencies. He compared a non-crypto person dismissing crypto as not being cash to a blind person claiming that lights are useless.
In the aftermath of the Moroccan earthquake, Binance Charity chose to airdrop up to $3 million worth of BNB directly to their Moroccan users. However, the organization also recognizes the importance of traditional aid and pledges to collaborate with local organizations. Binance Charity will donate all funds raised from the public to a local charity in Morocco, in addition to their direct donation to users.
Despite the criticism, Binance Charity remains committed to refining its approach based on data and feedback from experts. The organization acknowledges that complaints offer opportunities for improvement and expresses a willingness to engage with humanitarian experts to enhance the effectiveness of its initiatives.
The ultimate goal of Binance Charity is to leverage technology, specifically blockchain, to empower individuals and communities for sustainable development. The organization sees significant untapped potential in blockchain and remains dedicated to deploying 100% of funds to recipients, a figure higher than most other charitable organizations worldwide.
While the recent earthquake aid venture has faced scrutiny, it is important to remember that Binance Charity’s efforts are driven by a desire to make a positive impact. As the organization continues to evolve, it aims to combine technological advancements with humanitarian expertise to deliver aid in the most effective and efficient manner possible.