LVMH jewelry brand BVLGARI will adopt blockchain technology to track and trace donations associated with the Bvlgari X Save the Children collection in Japan. The luxury brand has partnered with the non-profit since 2009. It donates €75 ($89) for each sale of jewelry in the collection to the charity.
The new blockchain-based feature will issue a digital certificate for each piece of jewelry sold to enable purchasers to track the use of their donations and understand how the proceeds impact communities through an interactive digital experience.
Until now, $100 million has been donated to four key areas in youth assistance: empowerment, emergency assistance, education, and poverty alleviation. Through the digital experience, buyers can discover more about each area and read stories about children who benefited from Bvlagari’s donations.
Documentary Poverty Inc. highlighted how charities have become a multibillion-dollar industry and how often money donated does not go towards the donor’s intended destination. And initiatives such as Charity Navigator calculate the percentage of donations that actually go towards the cause as opposed to administrative costs.
Blockchain is a great tool for initiatives looking to increase donations to charities. There are other uses of blockchain in aiding charity functions other than tracing donations. Red Cross operated a blockchain credit system in Kenya and UNICEF has a fund that accepts donations in cryptocurrencies since 2019.
The blockchain being used in Bvlgari Save The Children collection is likely the Aura blockchain initiated by LVMH. Aura is a blockchain consortium backed by luxury brands LVMH, Prada and Richemont that works to enhance partner brands’ customer experiences. One of the main objectives of the blockchain is to protect brands from counterfeiting through authenticity solutions and digital certificates.