As the US Federal Election Commission has taken a leap into the digital age and has approved the use of the virtual currency Bitcoin to make financial contributions to political candidates, Bitcoin supporters are enthusiastic about the development. They believe that it will not just help politicians and political parties but the digital currency as well.
ForexMinute has reported several times about the decisions from senators and Libertarian Party of US and Canada to accept Bitcoin; however, it is the first time that the US Federal Election Commission has given a positive nod about Bitcoin donations to political parties and politicians.
Accept Bitcoin Donations for Political Campaigning
This will be the first time when the FEC’s move that allows candidates running in this year’s midterm elections to accept Bitcoin contributions is going to happen. The decision was taken by the agency’s six commissioners who unanimously adopted guidelines proposed by the Make Your Laws political action committee.
The experts believe that under Make Your Laws’ guidelines, though contributions will be limited to $100 per donor per election cycle, the trouble is that the value of Bitcoin fluctuates a lot and it will definitely be difficult for the commission to keep a tab on Bitcoin donations and track the exact value.
At the same time to promote transparency, an individual must provide identifying information, including name, physical address and employer, in order to make a contribution; however, with Bitcoin at the service, anonymous transactions is a norm. Despite all lacunae, Bitcoin donation in the political arena is being hailed as a major step toward legitimacy of the digital currency.
Legitimize the use of Digital Currency
It would be seen if the decision from the US Federal Election Commission will help Bitcoin little or large, it is quite clear that the decision reinforces Bitcoin’s parity with the dollar on the world political stage. The measure is expected to bring legitimacy to the digital currency which is being suspected by lawmakers as it is not governed or controlled by any agency or authority.
In the last couple of months, particularly after the mid-2013, Bitcoin saw a jump in exchange value and reached even to $1200 benchmark in October that year. The growth and bright prospects make Bitcoin a dependable payment method and entry into the political donations is expected to further help it get acceptance by the system in US.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org