14 DAY TRIAL // Just the other day, the Department of Defense revealed that an investigation had been launched to analyze the way Bitcoins, smartphones and even social media could be used for terrorist purposes. Now, the US Federal Election Commission (FEC) says that virtual currencies can be used for donations to political action committees.
The FEC voted on this unanimously, but limited donations in Bitcoins up to an individual cap of $100 for each election cycle.
However, before the donations in virtual currencies can be put to good use, the committees will have to sell the Bitcoins and deposit the proceeds into the campaign depositary. The FEC did not approve the use of Bitcoins to purchase campaign goods and services, which is rather silly considering that it gave the green light to the donations.
Even though Bitcoins are known for their main feature – anonymity – those who choose to make donations in virtual currencies will still have to provide their names, addresses, occupations, and employers.
According to the Federal Election Committee, Bitcoins are “money or anything of value,” according to federal election law. However, it has admitted that government agencies, courts and others are having trouble deciding whether virtual currencies should be treated as money.
Truth be told, American agencies have been inconsistent in their view on Bitcoins. On one hand, citizens are allowed to own them and use them, and they’ll even be taxed for having them, but the virtual currencies of the world aren’t recognized as such.
The largest fears have been related to the criminal activities that Bitcoins have been used for, including the famous Silk Road black market where drugs and weapons were being sold anonymously, and which was shut down last year. Of course, a second version of this dangerous market was launched soon after and things are reportedly going better than ever for its members.
However, one thing is going completely ignored by authorities in this entire situation, namely the fact that traditional currencies are used for the very same things and quite often, the money used for criminal purposes can be just as untraceable as Bitcoins.
The prejudices against Bitcoins and other virtual currencies stem from the fact that governments have no control over them, nor do any central banks. Their values can rise and sink at the smallest signs of regulatory decisions from one country’s government or another’s, as well as based on the day’s demand.