The Electoral Committee Of Canada To Consider Accepting Cryptocurrencies as Donations
The rise in adoption of Cryptocurrencies has convinced Elections Canada, to consider start accepting Bitcoin and other altcoins as a contribution to its upcoming general elections. The committee is currently seeking the guidance of political parties to decide over the matter.
Elections Canada recently published an “Interpretation Note”. The note started off by noting that the interest rate for cryptocurrencies is on the rise. Thus they have made queries for how they can be utilized to make contributions during elections. The publication also outlines the rules for the transaction of such assets in regards to political matters.
The Interpretation Note
Furthermore, cryptocurrencies are classified as non-monetary, likening it to money and property. This implies that the digital token could be used to make purchases just like money, however, they can’t be transferred directly into a bank account. The token has to be converted first to fiat currency before being sent.
Looking at this classification, it can be assumed that the new policy to allow contributions via digital currencies may already be underway. As currently money and property are currently used to make contributions during a campaign. As of now, the final decision lies with the platform who has given political parties up to January 21 to state their opinion regarding the matter.
The published document also notes a limitation for the digital assets, the anonymity of payments. The decentralized nature of the assets makes it difficult to track the send. This makes such donation directly in contrast with the contribution rule, that donations over $20 have to be validated and reported to the Canada Elections Act (CEA).
Noting the situation a possible solution has been outlined. A separate wallet is to be created to receive these funds. As and when a transaction higher than $20 are recorded, the corresponding political entities will have to for the name, address, and email address of the donator. In addition, the transaction number on the Blockchain will have to be stored.
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