A Taiwanese politician has received cryptocurrency donation for his campaign project. The political campaign sponsorship with cryptocurrency reveals the extent cryptocurrency use with institutions and its process has gone, even as campaign donation with cryptocurrency remains a debate in the United States of America.
Political Campaign Donation in Cryptocurrencies
A candidate of the New Power Party for the Taipei City Council election in Taiwan accepted a donation in cryptocurrencies for his political campaign. The cryptocurrency donation was made in the top value cryptocurrency, Bitcoin which was an equivalent of $325.
Hsiao Hsin-Chen, the political aspirant, had earlier stated in August that he is very interested in accepting cryptocurrency donations from his supporters for his political ambition. This was motivated by his belief that digital asset can contribute to the transparency of the country’s political system through the openness of transactions feature. Further, he noted that the choice of technological innovation could be used to tackle the menace of corruption, which is the main subject of his campaign.
Meanwhile, the Taiwanese law permits cryptocurrency donation for a political campaign. However, it should not exceed $325. But the fluctuation of the cryptocurrency market could cause a variation in the value of a donation. To this, the local monetary, regulatory authority of the country has stipulated that the candidate must either refund the surplus to the donor if known or transfer the excess to the account of the regulator, in compliance to the law.
Cryptocurrency Support By Taiwanese Politicians
Hsiao Hsin-Chen’s support and interest in cryptocurrency is similar to the role of Jason Hsu, a Taiwanese politician known as a crypto congressman. Since becoming a parliamentarian in 2016, Hsu has focused on promoting innovative technology in the country such as blockchain, and cryptocurrency.
At the moment, Hsu has taken up the grand role of introducing legislation for cryptocurrency regulations in the country as well as creating an exclusive economic zone that will accommodate over 200 blockchain startups.
Cryptocurrency Donation For Political Projects
In the United States of America, while the federal government has assented to the use of cryptocurrency for donation in political campaigns, the state governments have developed a different stance to this. This has led to adjusting the law to suit the interest of each state.
Most American states have rejected cryptocurrency donation in a political campaign because of transparency of the source of a crypto donation which could be unknown because of the privacy associated with cryptocurrency transactions.
Meanwhile, in states that have adopted cryptocurrency donations, a limit is placed on the amount that can be donated as it is in Taiwan.