California to Allow Cryptocurrency Campaign Donations: Details

Candidates for state and local offices in California will soon be able to accept cryptocurrency campaign donations. The Fair Political Practices Commission voted Thursday to approve new rules allowing the donations for digital currencies such as Bitcoin. The new rules say candidates can accept cryptocurrency donations if they immediately convert the digital currency into US dollars. They must also use a registered cryptocurrency processor to handle the transaction that will collect the name, address, occupation and employer of each contributor.

Cryptocurrencies don't rely on banks. Instead, transactions are recorded digitally through blockchain technology.

California's new rules will take effect within 60 days. California had been one of nine states that prohibited cryptocurrency contributions. Twelve states, plus Washington D.C., allow cryptocurrency contributions in some form, according to a commission staff report.

Candidates running for federal office are already allowed to accept cryptocurrency donations.

Back in May, the Wikimedia Foundation, announced that it will no longer accept cryptocurrency donations and closed its BitPay account. The revelation came after the organisation that develops the world's biggest encyclopedia platform, Wikipedia, had a three-month long discussion with 400 local community members after longtime Wikipedia publisher Molly White proposed a vote on whether crypto donations should be allowed by the organisation. More than 70 percent of participants in the vote agreed to discontinue all form of donations in cryptocurrency.

The Wikimedia Foundation began accepting Bitcoin in 2014, when it reasoned that adding Bitcoin as a donation option would help make contributing to the Wikimedia Foundation “as simple and inclusive as possible.” The foundation initially worked with Coinbase to accept Bitcoin donations before switching to BitPay to facilitate donations in additional cryptocurrencies.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.