Though this blog from BitPay says that people were able to donate Bitcoin to Wikipedia, it was converted to USD and then transferred to the organization. However, the latest announcement from Wikipedia says that using Coinbase, a Bitcoin exchange, people interested to contribute to the purpose of the organization can now pay in Bitcoin.
The blog from Wikipedia reads that Coinbase will immediately convert Bitcoin to USD dollars, requiring minimal technical implementation on its end. It says that since the organization now also has guidance on how to account for Bitcoin, there is a clear understanding of how to legally manage it.
Lisa Gruwell of Wikimedia, which owns and curates Wikipedia, said that this option was a frequent demand of the community and for the company will get help from Bitcoin wallet Coinbase, who will make it so Bitcoin donations are immediately converted into US dollars. The decision was long due and done finally after a lot of discussion.
She says that during the review, the organization identified a new way to work around past technical challenges, as well as to minimize the legal risks of accepting Bitcoin. According to her using the services from Coinbase, the donors will not just be able to pay in Bitcoin but also stay assured of safe and secure payment.
At the occasion, Coinbase also issued a statement about the partnership and said that it is offering zero procession fees for non-profits. The organization says that the Internet has made it easier for non-profits to operate by enabling them to increase geographic reach and reduce the overhead required to fundraise.
A Well Thought Decision by the Wikipedia Foundation
According to Coinbase adding Bitcoin as a donation option is a natural next step for non-profits because it eliminates one of the most significant costs remaining payment processing fees. It says that in response, it is proud to announce zero processing fees for all registered non-profits accepting Bitcoin through the merchant tools.
Accepting Bitcoin through the merchant tools according to Coinbase means that any non-profit accepting Bitcoin through it will be able to instantly cash out their Bitcoin donations for USD and receive a daily bank transfer, free of charge.
Coinbase director of business development Adam White also admits that Foundation took the slow and steady approach to make sure that it maintained full legal compliance. He said it gave Wikipedia enough confidence to say let’s move forward with this and choose a solution.
To contact the reporter of this story: Deepak Tiwari at email@example.com