The state of Colorado also known as the Centennial state has announced plans to accept Bitcoin and other digital currencies for their political campaigns. According to a report by the Denver post, secretary of state Wayne Williams submitted the proposal seeking to secure the acceptance of Bitcoin and other crypto-currencies as donations for political campaigns. The draft proposal, however, allows each candidate to only accept a specified amount of digital currency at a time. The proposal also offers clarity on the valuation of the coins; stating that the amount of the contribution; would be the value of that crypto-currency at the time the contribution is made.
The implementation of this move is supported by the fact that the Federal Election Commission (FEC) had already given their stamp of approval on the acceptance of Bitcoin as in-kind donations for campaigns. The Federation, however, gave a time period of 10 days for the donated coins to be reflected on the campaign’s official depository. The campaign would also be required to return donations that exceed set limits due to inflation.
This move by the Centennial state, to allow crypto-currency donations for campaigns is not a first though. Similar moves had been seen in New Hampshire back in 2014, with the New Hampshire gubernatorial candidate at the time, Andrew Hemingway accepting Bit-coin donations. US congressional candidate Patrick Nelson is also said to have accepted crypto-currency donations according to a 2017 report by ETHnews. A whopping $4500 worth of Bitcoin made in favor of Austin Petersen’s Missouri senatorial bid, is said to be the largest reported digital currency campaign donation yet.
This latest move by the state of Colorado is likely to excite a lot of crypto enthusiasts who had seen a dark cloud cast above the future of the block-chain, with a lot of investors going bearish on digital currencies. Impending regulations and bans had also marred the crypto-currency space, but this move is likely to restore some faith and give crypto-currency analysts something to murmur about.
This move, however, has not come without some opposition, with Colorado’s deputy secretary of state Suzanne Staiert foreseeing accounting problems if the move is actualized. The state of Kansas has also been highly opposed to the use of digital currencies in their political campaigns, with the Kansas governmental ethics commission (GEC) banning crypto-currency donations, citing the “secretive and untraceable” nature of cryptocurrencies as the reason behind the ban.
The cryptocurrency world is experiencing a seesaw movement right now. Critiques in high places have cast doubts and moved to regulate and ban it in different areas of activity. Despite the cynicism though, digital currencies keep catching new breaks; with moves such as the one by the State of Colorado seen as yet another endorsement of the mass adoption of crypto-currencies in broader areas of activity.
The acceptance of crypto currencies in Colorado campaigns will have a profound effect on crypto currency adoption. This move will not only be a boost to crypto currency enthusiasts but will also help those running for office access funds with very little waiting time. Only time will tell if other states also warm up to the idea of accepting crypto currency donations during election cycles.