WHAT IMPACT COULD THIS HAVE ON PHILANTHROPY MORE WIDELY?
This is really where the crux of this whole thing lies for me. It would be easy to dismiss this issue (and by extension this blog …) as merely an esoteric kerfuffle in the world of blockchain and cryptocurrency. However, I actually think it points to some wider potential problems about the relationship between the development of technology and the notion of philanthropy: ones we would do well to start paying attention to.
The questions raised above - about whether sufficiently long-term or high-risk investment can be viewed as philanthropy, and whether technology is in and of itself a social good - are ones that go much wider than the current debate about ICOs, and are likely to become more prevalent as an increasing amount of wealth is created in the technology sector and that consequently shapes philanthropy.
Questions about whether sufficiently long-term or high-risk investment can be viewed as philanthropy, or whether technology is in and of itself a social good, are e likely to become more prevalent as an increasing amount of wealth is created in the technology sector and this consequently shapes philanthropy.
Likewise, whilst the use of Swiss foundations in the development of ICOs might well be totally legitimate that doesn't mean there might still not be a knock on effect in terms of general perceptions of foundations elsewhere in the world. People, for instance, might become increasingly cynical about foundations if they think they are merely being used as ways of allowing commercial ventures to get investment outside of existing regulatory structures.
The fact that Swiss foundations are acknowledged to be somewhat lacking in transparency might also be a problem if people perceive that they are being used for ICOs precisely for the purposes of reducing transparency. Whilst the context might in reality be particular to Switzerland, if things go bad, that is not going to stop people extrapolating to foundations elsewhere in the world.
Given that in many places foundations already face significant reputational challenges when it comes to transparency, that may be a cause for concern. It may not just be about extrapolation either: Zug (Crypto Valley) remains the global hub for ICOs currently, but if the bandwagon keeps on rolling then other countries are likely to want to get on board too. So it may well be that foundations in other countries find these problems actually arriving on their doorstep.
I’m not entirely sure how concerned those in the foundation sector or wider civil society should be about ICOs and Swiss Foundations. Maybe not at all (for now at least). But it does seem to raise some fairly fundamental questions about what constitutes a public good and where the distinction between a donation and an investment lies, so I can’t help but think it is worth thinking about. For me, given how much time I have spent thinking about how philanthropy could take advantage of disruptive technologies, it is also a salutary reminder that we should also keep a close watch on how those same disruptive technologies might in the future take advantage of philanthropy.