Binance is setting up its own blockchain organization to help charities become more transparent. The crypto exchange is not ready to release the Blockchain Charity Foundation yet, but has stated that all exchanges fees paid by coin projects will be donated to the organization. This is what CEO Changpeng Zhao wrote in a blog post.
Zhao believes that the lack of transparency is hurting charity organizations. There are estimates that state that 80 percent of all donations never reach their intended beneficiaries. By building charity organizations on the blockchain, donors will be able to see and follow where their money goes.
The Blockchain Charity Foundation (BCF) should consist out of four layers. Donors, BCF charity programs, charity partners and the beneficiaries should all contribute. Everybody should be able to see where money goes, and fraud within charity organization can be eliminated. Binance is currently looking for partners and developers to create this platform.
BCF will not be created on its own blockchain or using its own coin. The charity organization should be using other blockchains. Zhao also wants the system to embrace different coins, so people can donate any coin in their portfolio.
The CEO predicts there might be one problem: the last mile. It might be a bit tricky to educate people; get them a crypto wallet and teach them how to change that for actual fiat money.
You can find the website of the BCF here