Charity is a growing sector and one where bitcoin could make a significant impact. Technology giant Tencent is currently donating 2% of its profit to charity, as the usage of mobile internet is growing in China’s philanthropy sector. Moreover, new legislation in the country makes it easier for approved companies to raise and manage funds for charitable causes.
Bitcoin, Charity and China May Come Together Very Soon
Tencent is a household name in China, as it is a technology company offering a broad range of services. With a strong focus on mobile, it is good to see the company pay attention to what is going on around them. As it turns out, the usage of mobile internet in Chinese philanthropic circles is on the rise, which benefits Tencent a lot.
But unlike most other companies in the world, the Chinese technology giant is giving back to the community. Or to be more precise, the company will donate 2% of annual profits to charitable causes. This decision is partially influenced by new legislation in China, which allows approved internet companies to raise funds for charitable goals. Most of the country’s tech billionaires are philanthropists at heart.
In fact, Tencent Founder Pony Ma Huateng donated 100 million Tencent shares to a personal charity fund in April of 2016. These shares were worth over US$2bn at the time of the announcement and have continued to appreciate over time. Moreover, Ma also vowed to use technology to transform public welfare efforts in China over the next few years.
Tencent has put together an internal plan to commit 1% of annual profit to charity back in 2007. However, since this new legislation has gone into effect, those efforts will be doubled. To date, the company has donated 480 million yuan to Tencent Charity Funds in its 2015 annual report, which translates to nearly 16% of its total profit.
At the same time, this is also good news for Bitcoin, as cryptocurrency continues to gain traction in Asia. Companies such as Tencent may want to look at bitcoin to raise additional funding for charitable causes, as it is the only global currency in existence today. Bitcoin is also accepted by various charitable organizations in the world today, including the Red Cross and The Water Project.
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