14 DAY TRIAL // In light of recent problems with Bitcoin, the Electronic Frontier Foundation (EFF) has taken measures to distance itself from the virtual currency in order to avoid influencing people about adopting them.
As a primary measure, the EFF has stopped accepting donations in Bitcoins. Before this, it was one of the most prominent organizations offering a Bitcoin option to donors.
The digital rights watchdog cites several reasons for this decisions. The first is that Bitcoin's legal standing is unclear and might raise issues related to the securities law, the Stamp Payments Act, tax evasion, consumer protection and money laundering.
"While EFF is often the defender of people ensnared in legal issues arising from new technologies, we try very hard to keep EFF from becoming the actual subject of those fights or issues," the organization says.
Because of pretty much the same reasons, the organization is careful not to spend many Bitcoins it has received, despite the donors expecting their donations to be used for its work.
Because closing a Bitcoin account is not possible and because returning the virtual coins to the donors would be very difficult, the EFF is donating them to the Bitcoin faucet, a project which puts them back into circulation for free to fuel the Bitcoin economy.
Finally, the organization is also concerned that by accepting Bitcoins it might influence other people into adopting the virtual currency thinking its secure and risk-free. Recent incidents surrounding Bitcoin and its exchanges have proven that that's far from true.
"While we’ve been following the Bitcoin movement with a great degree of interest, EFF has never endorsed Bitcoin. In fact, we generally don’t endorse any type of product or service – and Bitcoin is no exception," the EFF stresses.
This decision could lead to further devaluation of Bitcoins, which have been on the decrease for the past few weeks after a bubble that put the price at $28 per coin.