Binance co-founder Changpeng “CZ” Zhao has pledged to donate 500 BNB—valued at approximately $605—to Thailand and Myanmar in response to the devastating 7.7-magnitude earthquake that struck the region on March 28.

The earthquake caused widespread flooding and extensive damage to infrastructure, particularly in Myanmar, where the epicenter was roughly 10 miles from Mandalay.

In a post on X, Zhao expressed concern for those affected and said Binance and Binance Thailand would distribute the donations if a decentralized identity (DID) donation system is unavailable.

Blockchain Transparency Efforts in Fund Distribution.

Zhao’s approach enhances transparency by ensuring all transactions are registered on a blockchain, which enables donors and recipients to check the flow of funds in real time. A DID model potentially reduces inefficiencies, directly assisting affected people and lowering administrative overhead.

However, according to The Guardian, the earthquake has already claimed at least 144 lives, and over 700 others are injured. Rescue teams in both countries are working to recover those still trapped beneath the rubble, and the death toll will likely rise.

Myanmar’s military leader, Min Aung Hlaing, has publicly appealed for international assistance to aid relief efforts.

Cryptocurrency in humanitarian aid has gained traction due to its speed, transparency, and ability to bypass traditional banking infrastructure.

Challenges and Centralized Alternatives.

If a DID system isn’t available, Binance and Binance Thailand will handle the Binance donation process. While this ensures quick distribution, concerns remain about transparency when centralized entities manage relief funds. CZ’s project has triggered conversations in the cryptocurrency community about enhancing blockchain transparency initiatives in charity and disaster relief.

Unlike conventional charities, crypto donations offer immediate, transparent, and censorship-resistant transactions. Such benefits make crypto disaster relief an accepted approach in areas with poor banking infrastructure.

Blockchain networks provide immutable records, enabling donors to see how their donations are spent. Smart contracts would also maximize the distribution of funds, so donations would reach beneficiaries directly without middlemen.

With Myanmar facing significant infrastructural challenges, Binance must ensure that the aid reaches those in need. To maintain credibility in its Binance donation process, regulators will closely monitor the exchange’s involvement in fund distribution.

Due to the potential for misuse with centrally delivered aid, utilizing blockchain transparency drivers remains on the agenda. As talks ensue, the crypto space acknowledges the value of decentralized, on-chain authentication systems.