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- Former US Congressman: Washington Regulators Thwart Crypto Innovation
Digital currency is having a large effect on the future of our finances and there are a number of world citizens that are interested in adopting cryptocurrency as one of their main uses of payment. It’s not particularly surprising that cryptocurrency is swaying votes worldwide and even making its way into campaigns for funding sources as well.
Cryptocurrency is not widely accepted as a funding source for political campaigns currently as a number of various state and federal laws bar the use of candidates contributing digital currencies for their campaign funds. As there are a variety of rules that can limit donations within a political party the use of cryptocurrency and blockchain technology could help to prevent errors and fraud within the political system.
If a party is suspected of donating too much into his or her campaign or contributing more than the agreed upon amount everything would be visible using digital cryptocurrency. We would finally have real transparency within the system of donations for a political campaign.
In a recent survey conducted on just over 1000 US registered voters, around 60% of these voters suggested that digital cryptocurrency should have its own place within legal donations for campaigns. Only 21% disagreed with cryptocurrency being disallowed for party donations.
Since 2014 only one cryptocurrency has been accepted for party donations and that is Bitcoin. Party donations are also limited with Bitcoin up to $100 based off of the current market value of the coin at the time. Until some of these limits are lifted and until other types of cryptocurrency are accepted, it may be difficult for the average cryptocurrency to influence or fund any type of political party.
Thoughts on the use of these cryptocurrencies is starting to grow in popularity. As more trust builds towards different types of cryptocurrency is a much better chance that they will be widely accepted and secure enough for their use in political donations. A much larger portion of voters today are familiar with this technology when even compared to 2014.
The largest barrier between a political link and cryptocurrency comes down to the wide fluctuations in price. Until there is more stability within cryptocurrency it could take time before it’s accepted as donations. The use of widespread cryptocurrency donations where transactions are not limited could also open up elections to international tampering. As cryptocurrency is sent from accounts worldwide into donations for a particular party, it leaves the chance for widespread deals to be made in exchange for funds from overseas that could be easy to launder.
These types of concerns may have to be addressed before politics and cryptocurrency can meet and before crypto can be used to fund political parties. One thing is for sure, voters are interested in adopting more cryptocurrencies, and the parties that are supporting their use are likely to sway voters their way.