{"id":325,"date":"2022-07-19T13:51:52","date_gmt":"2022-07-19T13:51:52","guid":{"rendered":"https:\/\/mpelembe.net\/?p=325"},"modified":"2022-07-19T13:51:52","modified_gmt":"2022-07-19T13:51:52","slug":"africans-turn-to-crypto-as-charity-funding-dwindles","status":"publish","type":"post","link":"https:\/\/mpelembe.net\/index.php\/africans-turn-to-crypto-as-charity-funding-dwindles\/","title":{"rendered":"Africans turn to crypto as charity funding dwindles"},"content":{"rendered":"<ul>\n<li class=\"x_MsoNormal\"><span lang=\"EN-GB\">Fundraising via crypto, NFTs grows amid funding downturn<\/span><\/li>\n<li class=\"x_MsoNormal\"><span lang=\"EN-GB\">Advocates say crypto donations faster, easier to access<\/span><\/li>\n<li class=\"x_MsoNormal\"><span lang=\"EN-GB\">Challenges include internet, power access and gender gap<\/span><\/li>\n<\/ul>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">By Kagondu Njagi<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">NAIROBI, July 19 (Thomson Reuters Foundation) &#8211; A sculpture of a giant tap spewing plastic waste greeted delegates at U.N. environment talks in Kenya earlier this year &#8211; a reminder of the urgent need for them to agree a\u00a0<a title=\"Original URL: https:\/\/news.trust.org\/item\/20220302161318-iczmr. Click or tap if you trust this link.\" href=\"https:\/\/news.trust.org\/item\/20220302161318-iczmr\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"Verified\" data-linkindex=\"0\">global<\/a><a title=\"Original URL: https:\/\/news.trust.org\/item\/20220302161318-iczmr. Click or tap if you trust this link.\" href=\"https:\/\/news.trust.org\/item\/20220302161318-iczmr\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"Verified\" data-linkindex=\"0\">\u00a0pact<\/a>\u00a0to curb plastic pollution.<\/span><\/p>\n<p><!--more--><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">The 30-foot (nine-meter) tall sculpture was built from rubbish collected in Nairobi&#8217;s Kibera slum by artist and activist Benjamin Von Wong, who raised funds for the project by selling non-fungible tokens (NFTs), records of digital images bought with cryptocurrency.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Von Wong &#8211; with activist Casson Trenor and the Degenerate Trash Pandas, an NFT community that advocates against plastics with the Solana cryptocurrency &#8211; raised about $110,000 for the installation that also provided work to about 100 Kibera youth.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;Raising funds through cryptocurrency was something new for us,&#8221; said Byrones Khainga, director of technical services at Human Needs Project, a nonprofit in Kibera that helped on the installation.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;But it is now going to inform how we implement our social welfare activities because we have seen how fast we can move on fundraising,&#8221; said Khainga, whose nonprofit tackles problems in Kibera such as garbage disposal and access to drinking water.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">The project is one of several examples of cryptocurrency and NFTs being used in African nations to fund welfare and development projects related to education,\u00a0<a title=\"Original URL: https:\/\/news.trust.org\/item\/20210422025353-vdm9a. Click or tap if you trust this link.\" href=\"https:\/\/news.trust.org\/item\/20210422025353-vdm9a\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"Verified\" data-linkindex=\"2\">electricity<\/a>, healthcare, housing and livelihoods.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Crypto fundraising has picked up as traditional channels of funding dried up in the wake of the coronavirus pandemic and because of economic slowdowns, said Roselyne Wanjiru, a researcher at Blockchain Association of Kenya, an industry body.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;Crypto reduces barriers of entry, and is a fast way of raising funds for social causes because it is easier to navigate than traditional financial systems,&#8221; said Wanjiru.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;We are seeing more companies and individuals use it to offer solutions to communities.&#8221;<\/span><\/p>\n<p class=\"x_MsoNormal\">\n<div class=\"inline-photo inline-media-container\"><img decoding=\"async\" src=\"https:\/\/news.trust.org\/contentAsset\/image\/8b839a69-d789-4bc7-8c96-eac86e8fbf47\/multimediaFileUpload1\/byInode\/1\/filter\/Resize,Jpeg\/jpeg_q\/69\/resize_w\/1230\" alt=\"\" \/><\/p>\n<div class=\"caption\">A resident fetching water at the Human Needs Project facility in the Kibera slum in Nairobi, Kenya. May 20, 2022. THOMSON REUTERS FOUNDATION\/Kagondu Njagi.<\/div>\n<\/div>\n<h4 class=\"x_MsoNormal\"><span lang=\"EN-GB\">COSTLY BARRIER<\/span><\/h4>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Cryptocurrencies were designed to be free of central financial authorities such as governments and central banks. They allow for &#8220;peer-to-peer&#8221; transfers between users online without any intermediaries.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Their relative anonymity also offers a haven for criminals, extremist groups and sanctioned governments, but champions say they help support marginalised groups and those\u00a0<a title=\"Original URL: https:\/\/news.trust.org\/item\/20211010235853-cosp1. Click or tap if you trust this link.\" href=\"https:\/\/news.trust.org\/item\/20211010235853-cosp1\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"Verified\" data-linkindex=\"3\">caught up in crises<\/a><b>,\u00a0<\/b>even as a sharp downturn in values hurts many users.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Payments and remittances via crypto are rising in Kenya, Nigeria and South Africa, which have among the highest share of crypto ownership among nations globally, according to the United Nations&#8217; trade agency UNCTAD.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">About 8.5% of Kenya&#8217;s 56 million people own crypto, UNCTAD said, while the Central African Republic adopted bitcoin as\u00a0<a href=\"https:\/\/www.reuters.com\/world\/africa\/central-african-republic-adopts-bitcoin-an-official-currency-2022-04-27\/\" target=\"_blank\" rel=\"noopener\">an official currency<\/a>\u00a0in April.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Virtual coins that use the same underlying blockchain technology as cryptocurrency are also in use in Kenya, like sarafu &#8211; meaning currency in Kiswahili &#8211; which is issued by the nonprofit Grassroots Economics Foundation.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">The community currency helps more than 50,000 poor residents who cannot access bank loans to pay for essentials such as food, healthcare and housing.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Also in Kenya, the Celo Foundation and Mercy Corps Ventures this year launched a\u00a0<a title=\"Original URL: https:\/\/news.trust.org\/item\/20220527020134-d45qs. Click or tap if you trust this link.\" href=\"https:\/\/news.trust.org\/item\/20220527020134-d45qs\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"Verified\" data-linkindex=\"5\">microwork pilot<\/a>, giving hundreds of youth access to digital jobs, and paying them with Celo dollars, a stablecoin that tracks the value of the U.S. dollar.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Microwork is a form of digital labour that breaks up big projects into hundreds of smaller tasks that can be completed on a mobile phone in minutes. In several African countries, more women than men are\u00a0<a href=\"https:\/\/media.africaportal.org\/documents\/After-Access_The-state-of-microwork-in-Africa.pdf\" target=\"_blank\" rel=\"noopener\">microworkers<\/a>\u00a0as they can work from home.<\/span><\/p>\n<p class=\"x_MsoNormal\"><b><\/b><span lang=\"EN-GB\">But paying workers on time is a challenge, with cross-border payments often slow and costly, with a high transaction fee.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">With Celo dollars, workers can be paid immediately, with a much smaller fee. On completion of a task, the payment is transferred to their digital wallet, and they can cash out the Celo dollars on M-Pesa, Kenya&#8217;s popular mobile money platform.<\/span><\/p>\n<div class=\"inline-photo inline-media-container\"><img decoding=\"async\" src=\"https:\/\/news.trust.org\/contentAsset\/image\/8b839a69-d789-4bc7-8c96-eac86e8fbf47\/multimediaFileUpload2\/byInode\/1\/filter\/Resize,Jpeg\/jpeg_q\/69\/resize_w\/1230\" alt=\"\" \/><\/p>\n<div class=\"caption\">Choreographer Big Mich shows her dance moves at Kibera slum in Nairobi, Kenya. February 17, 2022. THOMSON REUTERS FOUNDATION\/Kagondu Njagi.<\/div>\n<\/div>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">While stablecoins are seen as less risky than other cryptocurrencies, users can be affected by volatility if they hold on to them, rather than cash out immediately, experts say.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Cryptocurrencies can drive financial inclusion by creating new digital employment opportunities and reducing the cost of cross-border payments, said Scott Onder, senior managing director at Mercy Corps Ventures, the venture capital arm of global development agency, Mercy Corps.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;Cryptocurrency removes this costly barrier and has the potential to create new ways for young people to earn, spend, save and send money,&#8221; he said in a statement.<\/span><\/p>\n<h4 class=\"x_MsoNormal\"><span lang=\"EN-GB\">FILLING A GAP<\/span><\/h4>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Reliable access to\u00a0<a title=\"Original URL: https:\/\/news.trust.org\/item\/20210930050014-ufmwi. Click or tap if you trust this link.\" href=\"https:\/\/news.trust.org\/item\/20210930050014-ufmwi\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"Verified\" data-linkindex=\"7\">electricity and the internet<\/a>\u00a0are among the challenges to using digital coins in Africa, and most users are still men, an imbalance that mimics the uneven access to traditional finance.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">Kenyan choreographer Big Mich, who trains slum youth including girls on developing and marketing their dancing skills, aims to change that: she plans to sell her dance moves as NFTs, and use the funds to benefit poor communities.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;There are concerns that crypto mining is contributing to global warming because of the huge amount of energy it consumes. But we must not overlook the good things this technology can provide for us,&#8221; she said.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">In Nairobi&#8217;s Kibera slum, the funds raised through the sale of NFTs are also helping create hundreds of permanent jobs, said Von Wong.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;NFT communities can be leveraged as a major force for good, filling a major gap in development efforts across the globe,&#8221; he said.<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">&#8220;Anything that helps make it easier to funnel capital more quickly and inexpensively to those in need is always a good thing.&#8221;<\/span><\/p>\n<p class=\"x_MsoNormal\"><span lang=\"EN-GB\">(Reporting by Kagondu Njagi; Editing by Rina Chandran and Helen Popper. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit\u00a0<a tabindex=\"-1\" title=\"https:\/\/news.trust.org%29\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/news.trust.org)<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fundraising via crypto, NFTs grows amid funding downturn Advocates say crypto donations faster, easier to access Challenges include internet, power access and gender gap<a class=\"moretag\" href=\"https:\/\/mpelembe.net\/index.php\/africans-turn-to-crypto-as-charity-funding-dwindles\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":326,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAowu7GVCw:productID":"","_crdt_document":"","activitypub_content_warning":"","activitypub_content_visibility":"","activitypub_max_image_attachments":3,"activitypub_interaction_policy_quote":"anyone","activitypub_status":"","footnotes":""},"categories":[10],"tags":[50,907,909,896,900,902,908,905,895,893,183,897,894,388,899,904,740,906,898,901,903,738],"class_list":["post-325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-articles","tag-benjamin-von-wong","tag-big-mich","tag-bitcoin","tag-blockchain","tag-byrones-khainga","tag-casson-trenor","tag-central-african-republic","tag-continents","tag-cryptocurrencies","tag-decentralization","tag-digital-currencies","tag-geography-of-africa","tag-kenya","tag-kibera","tag-mercy-corps-ventures","tag-nairobi","tag-nigeria","tag-non-fungible-token","tag-roselyne-wanjiru","tag-scott-onder","tag-south-africa"],"featured_image_src":"https:\/\/mpelembe.net\/wp-content\/uploads\/2022\/07\/Tap-1024x683.jpg","blog_images":{"medium":"https:\/\/mpelembe.net\/wp-content\/uploads\/2022\/07\/Tap-300x200.jpg","large":"https:\/\/mpelembe.net\/wp-content\/uploads\/2022\/07\/Tap-1024x683.jpg"},"ams_acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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