As much as the US wants to embrace the cryptocurrency in the regular monetary exchange system, it cannot in the election campaign donations due to the flickering nature of bitcoin value.
Though the U.S. Federal Election Commission had initially allowed BTC Bitcoin at the value $5666.77 +-0.0% in 2014 elections, currently, only eight states have allowed whereas seven have completely banned the use of cryptocurrency contribution.
William Baker, a Michigan state legislature candidate was informed by the Michigan Department of State in a letter dated November 8 in reciprocation to an inquiry prior to the midterm elections that donations could not be made in Bitcoin as per MCFA Michigan Campaign Finance Act and APA Administrative Procedures Act. Ruth Johnson, Michigan Secretary of State elaborated that due to their frequently fluctuating values neither bitcoin nor any other crypto tokens were acceptable as a dollar value could not be assigned to them in administrative terms.
Even California, the Silicon Valley, has banned donations in cryptocurrency as the uniformity in the making of the digital assets vary. Bitcoin may be easily tracked along with its sender, but the anonymous coin Monero cannot be tracked. Also due to difficulty incurred at different points of transactions, including, the date it was sold to the donor, the date it was contributed to the candidate and the day it was recorded on campaign statement, and also the recording of the bitcoin value at different points in the transaction process, as reported on CCN.
A possibility of foreign interference in elections influencing operations is a concern as expressed by Scott Duekeke, the Director of DarkTower, a cyber-threat analysis company in the Senate hearing in June.
Center for Public Integrity finds it impossible to detect the reporting of donations made to the candidates in state electoral campaign. Austin Petersen of Missouri, Republican returned the received Bitcoin donations in 2018 elections, exceeding the federal government limits. In 2012 Mark Warden, Republican, New Hampshire, returned his bitcoins received from South Africa and Europe, as reported on Bitcoinist.
So even though the US is pro-cryptocurrency usage with eight states in favor, the volatility of bitcoin value and the task of recordings transactions are hurdles that may be crossed in time.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]