Vivek Ramaswamy, a US presidential candidate in the forthcoming election, has said he accepts Bitcoin (BTC) for campaign donations.
“Let’s make the 2024 election a referendum on fiat currency,” says Ramaswamy while speaking at Bitcoin 2023 in Miami, Florida.
Interestingly, the update comes a few days after Robert F. Kennedy Jr. became the first presidential contender in US history to accept Bitcoin campaign contributions.
While on stage, Ramaswamy flashed a QR code that, when scanned, redirects people to a payment gateway that accepts multiple payment alternatives for donations, including BTC and Satoshis – the smallest denomination of Bitcoin.
Ramaswamy Chooses BitPay’s Payment Service
By providing a QR code that leads to a payment gateway, the candidate is making it convenient for individuals to contribute to his campaign using Bitcoin. This approach allows supporters with Bitcoin holdings to quickly scan the QR code and make a donation using their preferred crypto.
Meanwhile, Ramaswamy has chosen BitPay as a payment processor to receive Bitcoin donations for his campaign. BitPay would handle the technical aspects of processing the Bitcoin transactions, converting them into a more fiat currency if desired, and ensuring compliance with regulatory requirements or campaign finance rules.
According to the campaign’s donation page, eligible U.S. citizens and permanent residents may contribute up to US$6,600 to the campaign, which is not deductible from federal income tax as a charitable contribution.
Additionally, the page also indicated that donors will be awarded a Non-Fungible Token (NFT), suggesting that there is an additional incentive for making a donation.
Meanwhile, Kansas State Committee on Elections had earlier proposed a bill that aims to control the use of crypto for political campaigns. The lawmakers proposed a cap of $100 when it comes to crypto political donations.
For donations under $100, the recipient must immediately convert the crypto to USD, not utilize the crypto for expenditures, and not hoard the funds.
The Implication of Bitcoin’s Adoption by Politicians
When politicians accept Bitcoin, it might be interpreted as a step toward establishing crypto as a legitimate form of payment. It also indicates a willingness to accept new technology and adapt to shifting financial climates.
However, the adoption of Bitcoin by political figures can also draw attention and scrutiny from various stakeholders, including regulators, the media, and the public. Concerns may develop regarding the source of the donations, crypto volatility, and the overall political impression of crypto.