Binance Charity Faces Backlash for Donating Cryptocurrency Following Earthquake
Cryptocurrency exchange Binance has received criticism for its decision to donate its native BNB token to Moroccan users affected by the recent earthquake near Marrakesh. The earthquake, which had a magnitude of 6.8, resulted in the deaths of 2,800 people and left approximately 300,000 people displaced and in need of assistance.
Despite Binance Charity’s efforts to distribute $3 million worth of BNB to users in the region, some experts argue that cryptocurrency has limited practical use during humanitarian crises. They emphasize that disaster victims require essential supplies like food, water, shelter, medical aid, and emotional support rather than digital tokens.
Controversy Surrounding Binance’s Donation
One point of contention is that converting BNB to local currency requires technical knowledge, making it inaccessible for many recipients. Critics argue that Binance is using the disaster situation to promote its digital asset agenda rather than focusing on immediate relief efforts.
“In post-disaster environments, most people are seeking the familiar. This isn’t a space for digital innovation and new financial tools. What people want is food, shelter, medical aid, and space to grieve. They’re not looking for crypto,” said Iain Overton, executive director of Action on Armed Violence charity.
The fact that Binance limited its donations only to existing platform users also drew condemnation. Aid experts criticized the company’s geo-identifying distribution method as ineffective in reaching those most in need.
Response from Binance Charity
In response to the backlash, Binance CEO Changpeng Zhao appealed to the humanity of Moroccan recipients unaffected by the earthquake, urging them to pass on the funds to those who require assistance. Binance Charity defended its relief efforts, stating that airdropping digital assets is a quick and cost-effective way to provide financial aid to disaster victims. They also highlighted the ability to convert cryptocurrencies into local fiat currencies.
“Crypto transfers can be used to deliver urgent financial aid to disaster victims as they provide fast, low-cost, borderless, and transparent transactions. As needed, they can also be converted to local fiat currencies around the world,” read a statement from Binance Charity.
The Role of Binance Charity
Binance established its charity arm in 2018 as a means of combining philanthropy with blockchain technology. The organization has consistently donated funds to humanitarian crises, including recent contributions to Libyan flood victims and victims of the Turkey earthquake.
Hot Take: Symbolic Gesture in Times of Need
Despite the controversy surrounding Binance’s choice of donation medium, any form of contribution during times of crisis serves as a symbolic gesture of support for those affected. Whether it’s cryptocurrency or cash, the intention is to provide assistance and solidarity in the face of adversity.
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