The role of wallets is storage and remittance
Cryptocurrencies are literally currency and function as close as possible to fiat money.
Compared to fiat currency, cryptocurrencies are inferior in terms of "storage of value," which is one of the roles of currency, but cryptocurrencies can be used to purchase goods and services and can be stored safely.
And you need a wallet to make these things happen.
Such cryptocurrencies can be a great advantage in money transfer situations compared to fiat money.
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Let's get to know about donations using cryptocurrencies
As you learned in Lesson 3, a wallet is a means of viewing the blockchain.
Anyone can view the entire transaction history of the cryptocurrency recorded in the blockchain.
All you need is a wallet to view it, and the best use of this characteristic is for donations.
There are still many developing countries in the world, and there are many people living there who cannot live without donations from developed countries.
In Japan, which is prone to natural disasters, donations are indispensable for communities that are trying to recover.
However, in the past, there has always been a concern about whether or not the donations are really reaching the people and communities in need.
This is due to the lack of transparency.
This is where a donation system using cryptocurrency can be expected to be utilized.
Since cryptocurrencies are managed by blockchain, the entire transaction history can be viewed.
Even if you donate through a third party as in the past, you can check with your own eyes whether your cryptocurrency has been delivered to the recipient.
You can also send money directly to the public key wallet address of the donation recipient without using a third party as an intermediary.
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Will cryptocurrency change international money transfers?
The merits of being able to use a wallet to send cryptocurrencies directly to the donation recipient are most apparent in international remittance situations.
Until now, international remittances have been subject to large exchange fees, for example, a $50 fee is charged for a $10 remittance.
However, by using cryptocurrencies, it is possible to send money internationally at very low fees.
If you want to make a small donation to a foreign country, cryptocurrency is the best way to send money.
This is not only for donations, but also for countries that have a large number of migrant workers.
If you want to send your hard-earned wages to your family back home, you will have to pay a lot of fees.
By converting the salary received in fiat currency into cryptocurrency, sending it to the family back home in cryptocurrency, and then converting the cryptocurrency back into fiat currency, it is easy to reduce the fees significantly.
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