The Role of Charitable Donations as Currency (Including the Assets of Charitable Donations)

According to the Financial Times, according to the survey results of the Bank for International Settlements, over 80% of global wallet addresses have no cash available for charitable purposes. However, countries like the United States and the United Kingdom occupy a large market share in the field of charity. Therefore, from this perspective, what function does charitable donations serve as currency?Specifically, if digital assets are considered as a means of payment, then charitable funds belong to a part of the monetary system because they are a valuable asset issued by the central government. However, since they are not raised from the society through legal tender, their circulation depends entirely on commercial banks or credit institutions. Moreover, this business involves various risks and challenges. For example, in the case of protest activities in small countries or relief efforts in certain countries, donations are collected using Bitcoin to prevent such events from happening. Another issue is “donations”. According to a report released at the United Nations General Assembly, the assets of charitable donations include gold, diamonds, and silver. These are considered as currencies obtained for items of special importance to specific people or groups (such as clothing, packages, etc.), as well as funds or inheritances usually raised by non-profit organizations or public utility companies and other directly related forms of economic activity. According to the data quoted in the report, as of July 31, 2018, over 10 billion US dollars were used for charitable projects, accounting for nearly 10% of the world total.