Earlier this year, the University of Pennsylvania received a generous donation of $5 million worth of bitcoin. And today, the university has announced it would remain to hold its bitcoin and would not sell it anytime soon.
John Zeller, University of Pennsylvania senior vice president for alumni relations said “the donor’s goal was to make a gift of that magnitude, a promotable gift, to say, ‘if you’re interested, we’re in the crypto world, and we can accept it.’”
‘Crypdonations’
The University’s announcement that it would remain to hold its bitcoin assets has put into the spotlight again the issues of donations in the form of cryptocurrencies.
Crypto donations are actually beneficial for donors because they allow them to avoid capital gains taxes when they make bitcoin donations to any charities. There is also the issue of how non-profit organizations should properly treat cryptocurrency donations.
Another benefit of crypto donation, especially bitcoin donation is that it can be sent anywhere in the world, with final settlement only lasting under 10 minutes with very low fees.
Crypto vs Fiat
International fiat transfer, as everybody knows, comes with final settlements that can take days or weeks and months, with very high fees.
That is why international transfers made in cryptos are quickly gaining traction as it directly solves the traditional money transfer system’s biggest inconveniences.
Many analysts believe that crypto donations would become the norm in the future when it comes to donations from global aid organizations. Crypto transfer, when compared to fiat, has a long list of advantages that consumers would gladly adopt.
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