In an era where education and technology increasingly intertwine, the recent $25 million donation from Ripple to a crypto education fund has sparked vibrant discussions about the role of blockchain in academia. However, as Yat Siu, co-founder of Animoca Brands, emphasizes in the latest episode of Byte-Sized Insight, mere financial contributions are not sufficient. He advocates for real-world applications, specifically highlighting decentralized finance (DeFi) as a compelling value proposition for students and the educational sector.
The Promise of DeFi in Education
On April 30th, Pencil Finance unveiled a $10 million initiative to provide blockchain-backed student loans. Supported by Animoca Brands and its Open Campus education branch, this initiative aims to offer a more affordable lending option for students. Siu argues that such infrastructural investments have a far-reaching impact beyond symbolic monetary donations.
According to Siu, “What our industry needs a lot more is these kinds of positive-sum use cases that everyone else understands. If students can receive better, cheaper, and more effective opportunities through crypto student loans, they’re likely to become pro-crypto.” This model seamlessly integrates cryptocurrency within the financing mechanism, utilizing blockchain to enhance transparency, efficiency, and accessibility in lending.
“While money has influence, it doesn’t necessarily change the system for the better. The technology… actually provides a way we can onboard people into that.”
Changing Perceptions through Education
Siu articulates a significant challenge within the crypto industry: its perception problem, particularly among individuals unfamiliar with financial innovations or the culture surrounding blockchain. Thus, educational initiatives must transcend conventional examples of NFT art or meme coins, gravitating towards universally understood applications.
He poses a thought-provoking question: “When someone asks, ‘What is crypto really good for?’ do we mention memecoins or do we discuss student loans? That’s something everyone understands.” The importance of fostering crypto literacy early on cannot be overstated, as it lays the groundwork for deeper acceptance and adoption within future generations.
Siu draws parallels with Apple’s historical approach to education discounts, suggesting that Ripple’s donation represents a crucial step towards increasing awareness and funding in educational contexts. However, Animoca envisions making crypto not just visible but indispensable within educational systems worldwide.
“We have to show what [crypto] is good for. We’ve got to start from the grassroots.”
To explore more on this compelling topic and gain deeper insights, listen to the full episode of Byte-Sized Insight on Cointelegraph’s podcast platforms including Apple Podcasts or Spotify. Additionally, delve into Cointelegraph’s broad range of shows for further exploration into the evolving landscape of cryptocurrency and finance.
