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The use of cryptocurrency for political donations has been a hot topic in many societies. Two recent developments demonstrate different opinions on this. A Taiwanese politician who accepted bitcoins from his supporters believes that encrypted donations can help keep the political system in his country clean and transparent. At the same time, the watchdog of the Californian campaign says that cryptocurrency can raise questions about transparency and is difficult to trace.
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Bitcoin donations contribute to transparency, says the Taiwanese politician
The cryptocurrency has entered into Taiwanese politics. A candidate at the Taipei City Council announced on social media that he had accepted a series of small bitcoin donations: a first, according to local media reports. Hsiao Hsin-chen, a representative of the New Power Party minority, received digital money worth $ 10,000 NT (~ US $ 325) from anonymous supporters. The money was sent after an ad on Facebook last month that his campaign is ready to accept donations to BTC.
In his request for support, Hsiao said that development is political well as technological implications. Krypton donations could help keep Taiwan's political system clean, he pointed out, cited by the Taiwan Business Next outlook. The nature of cryptocurrency, the fact that every transition is recorded on a public blockchain, can lead to greater transparency, he added. "Accepting bitcoins as a political donation is more symbolic than it appears", said the politician.
In Taiwan, cryptographic contributions are currently classified as non-cash political donations – a definition provided by the Ministry of the Interior. According to the recently updated Political Donations Act, candidates can accept up to NT $ 10,000 from anonymous donors, a limit that also applies to the value of the donated cryptocurrency.
If the sum exceeds the maximum amount, politicians are obliged to return excess money to the donor or hand it over to the state. However, it is not clear how the value of cryptographic donations will be estimated as the prices of digital resources can change significantly in a short period. Control Yuan, a governmental control agency, has advised candidates to keep a complete record of their donations.
The Commission & # 39; Independent & # 39; says no to the encrypted donations in California
Officials in the US state of California, however, share a different view of electoral contributions in the crypt. A commission charged with overseeing the Golden State political process recently announced that it is not possible to make donations with bitcoins like cryptocurrency, according to a report by the Associated Press. On Thursday, the Fair Political Practices Commission (FPPC) voted 3-1 to ban them. The watchdog says it may be difficult to trace the origin of cryptocurrency contributions that could raise questions about transparency.
According to its website, the FPPC is an "independent, non-partisan" commission responsible for the administration of state political reform. Law regulating the financing of the campaign along with other potentially controversial aspects of political campaigns such as conflicts of interest and lobbying. Promoting transparency and promoting public confidence in the political system are two of its main objectives.
The Commission is composed of five members nominated for four years terms. The president and another member of another party are appointed by the governor. The other members are appointed by the State Comptroller, the Secretary of State and the General Prosecutor. No more than three commissioners could belong to the same political party. Currently one of the seats is vacant, which can be interpreted as a positive in terms of finding the balance in the generally bipartisan political landscape of the United States.
A similar body at the national level, the Federal Elections Commission (FED), allows bitcoin donations to federal candidates. In 2014 the FED decided that every US citizen can donate a cryptocurrency worth $ 100. A number of states have already addressed the issue – Colorado and Montana allow cryptographic contributions with certain restrictions, South Carolina and Kansas banned them. In April, the Wisconsin Ethics Committee discussed a proposal to limit crypto donations with the limit applicable to cash contributions – $ 100. Larger donations require a credit card or bank check.
What is your opinion about the contributions of the cryptocurrency campaigns? Share your opinions on the topic in the comments section below.
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