Texas Attorney General Greg Abbott will accept bitcoin contributions in the funding of his campaign for governor.
On Thursday, Abbot described the digital currency as decentralized in line with the principles of a liberalized market.
The campaign team of Abbot, a republican, said that it would take bitcoins as in-kind contributions. The procedure for bitcoin contributions will require the supply of names, addresses, employer and occupation, just like any other. All contributions submitted in the digital currency will be shown on campaign finance reports, according to CBS.
Bitcoins were supposedly created in 2009 by a mysterious individual or group of persons under the name Satoshi Nakamoto. The virtual currencies are utilized in trade across borders without going through third parties. The bitcoin has attracted huge investment hype.
The US Internal Revenue Service produced guidelines last month that categorized bitcoins as taxable property as opposed to currency.
The Wire quotes Matt Hirsch, Abbott’s communication manager as saying that his campaign laid emphasis on use of advanced tools to communicate via the internet and has made digital technology a priority from the outset.
“Something as innovative as Bitcoin is an opportunity for us to continue this focus, especially given the fact that it embodies free market principles, which Texans are very fond of,” he added.
Most Bitcoin users are young white males with liberal tendencies. Partly, this is due to the fact that the virtual currency is entirely decentralized and not regulated by federal authorities.
On Wednesday, Abbot invited the bitcoin community to join his team.
The FEC is expected to offer guidance next week on bitcoin funding of political campaigns. At the moment, politicians are treating bitcoin funds as in-kind contributions.
It’s likely that the FEC will allow utilization of bitcoins in settling campaign bills, as long as sellers don’t mind being paid that way. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org