Digital Asset Outlook 2022
2022 Thematic Snapshot
2022 Snapshots
Bonus Theme: Crypto-Philanthropy in 2022 ▪
Crypto-philanthropy has become increasingly popular among digital asset investors who have benefitted from wealth creation.
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The advantages of crypto-philanthropy, such as transparency and costeffectiveness, differentiate it from traditional means of donations.
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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
885mn Total BTC donated in 2021 (in USD)
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.
1,017 No. of participating nonprofits in cryptophilanthropy (2021)
Expectation for 2022 1.
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.
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Clearer regulatory framework A clearer regulatory environment for crypto-philanthropy, especially concerning taxation treatment, could make crypto-giving more prevalent
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