Bitcoin can be used in political funding. Politicians may get funds from such anonymous donors because it’s hard to figure out who donated what amount to which politician. For more info, visit the Ethereum trader website.
It is much easier to make anonymous transactions using bitcoins than with cash. For example, it is much easier for politicians to receive donations via bitcoins because they cannot trace the source of that money. In contrast, if you want to give a check or any traditional assistance, you have to go through the hassle of filling out forms.
On top of that, bitcoins are easier for foreign donors to use because it requires less effort than writing a check or transferring money into an American bank account.
Seven ways how bitcoin can be misused for political funding:
Since there is no way to trace the donor or where that money has come from, it might be used for funding terrorism as terrorists would find ways to fund their activities through bitcoins, which is hard to track by any authority.
So, when there are benefits that come along with using the bitcoin system for the help of political funding, it’s not far-fetched to think that some people will use this for their gain. There are ways in which politicians and campaign managers can use bitcoins in unethical practices:
- To funnel out-sized amounts of money to a politician or political cause.
- To hide or launder money from the public, donors, and regulators.
It may also harm the political processes because politicians are likely to influence anonymous donors intentionally. For example, if a political party is funded by some wealthy donor who has obtained those bitcoins through illegitimate means, it would not be suitable for the democratic process of any nation.
- To disguise undisclosed wealth by claiming it as a charity
- Making ‘loans’ that will never be paid back
- To avoid limits on how much an individual can donate by using multiple wallets or people
- To secretly fund dirty campaigns
- To defer or extinguish tax payments
In some countries, the law allows anonymous donations to political causes, making it even more challenging to uncover any unethical activities.
There is a lot of ambiguity on what lawmakers across the country consider legal and illegal. In some cases, bitcoins gained from illicit sources, such as the Silk Road can be donated to politicians.
8 Ways how bitcoin is helpful for political funding:
- People may donate bitcoins to political campaigns, which can add up quickly and lead to much support for the politician.
- Politicians who accept bitcoins may get major donors or corporations on board with them that potentially want to use this technology in their business plans.
- Politicians who accept donations via bitcoins may look forward to receiving more money than they would have through traditional methods.
- Since bitcoins are safe, easy, and quick to use, it enables donations by people who are currently less willing to donate money because of the lack of security or financial issues they might face.
- It’s easier for a politician to make a business transaction with another businessman who has bitcoins instead of cash.
- Donations given in the form of bitcoins show that you’re ready and willing to be an active participant in your local community, which can provide politicians with an incentive to accept them as donations.
- Bitcoins allow for quick transactions that are less likely to be canceled or returned than checks, which can help increase the number of donations made.
- Accepting bitcoins can increase the number of people willing to vote for you in local races because it shows that you are interested in technology and new platforms.
Conclusion:
Though bitcoins can give politicians much power over finances, risks are involved. For example, in the United States, campaign finance laws say that you can’t accept donations valued higher than $100 from one person.
However, since there’s no way of knowing who gave those bitcoins to a politician unless that person tells you, it can be straightforward for a wealthy person in business to donate more than $100,000 in one day without facing any consequences illegally.