The National Republican Congressional Committee — which fundraises for House Republicans — will now accept Bitcoin.
According to the group’s press release, the NRCC is the “first national party committee to begin accepting cryptocurrency campaign contributions.” Bitpay — a cryptocurrency payment platform — will facilitate the donations.
“The NRCC is proud to lead the charge in accepting cryptocurrency campaign contributions,” explained NRCC Chairman and Rep. Tom Emmer (R-MN) in the statement. “We are focused on pursuing every avenue possible to further our mission of stopping Nancy Pelosi’s socialist agenda and retaking the House majority, and this innovative technology will help provide Republicans the resources we need to succeed.”
To avoid the election fundraising regulations that surround cryptocurrency, the NRCC plans to convert all donations immediately to cash.
As Axios reported:
Crypto donations will be immediately converted into dollars before landing in the NRCC’s account… the committee will never actually take possession of the donated cryptocurrencies, allowing it to accept individual donations of up to $10,000 per year, rather than the $100 value for transfers of actual cryptocurrency like Bitcoin that the FEC approved in a 2014 ruling.
In other words, the NRCC isn’t actually receiving crypto, it’s just soliciting proceeds from their sales… allowing a more seamless transaction from crypto holdings to political contributions.
Emmer is a Co-Chair of the Congressional Blockchain Caucus — a bipartisan group of “Members of Congress and Staff who believe in the future of blockchain technology, and understand that Congress has a role to play in its development.” The group is “fascinated with the potential for blockchain technology to significantly improve identity management, asset tracking and ownership, healthcare records management, intellectual property rights, and much more.”
Bitcoin is a decentralized digital currency transmitted via blockchain — a public, virtual list that offers protection from counterfeiting. Central banks across the world are attempting to create their own digital currencies — albeit, without the benefits of decentralization.
The Federal Reserve is in the early stages of experimenting with a digital currency for the United States.
“The effective functioning of our economy requires that people have faith and confidence not only in the dollar, but also in the payment networks, banks, and other payment service providers that allow money to flow on a daily basis,” Fed Chair Jerome Powell said in a recent video. “Our focus is on ensuring a safe and efficient payment system that provides broad benefits to American households and businesses while also embracing innovation.”
Powell emphasized that a digital currency would only be created in the United States after a “thoughtful and deliberative process.”