The Humanity Forward Fund Takes a Leap into Bitcoin
In a political landscape where every dollar counts, the Humanity Forward Fund (Humanity FWD) has decided to shake things up by accepting donations in Bitcoin (BTC) through the Lightning Network. Kicking off their fundraising initiative, dubbed “21 Days of Bitcoin for the 21st Century,” on July 25, this PAC has thrown its hat into the ring for Democratic presidential candidate Andrew Yang.
Innovative Partnership: Humanity FWD and OpenNode
Realizing the potential of cryptocurrency, Humanity FWD teamed up with OpenNode to facilitate Bitcoin donations. This partnership marks a new chapter in political fundraising, aiming to capture the attention and contributions of crypto enthusiasts. The process is designed to be seamless, allowing quick transactions without the hefty fees that usually accompany credit card donations.
Why Bitcoin? The Fee Factor
Managing funds smartly is crucial for any PAC. Seth Cohen, the founder of Humanity FWD, pointed out that the traditional credit card processors can charge up to 4% on donations. In contrast, OpenNode is keeping it sleek with a mere 1% charge for Bitcoin transactions. This not only makes every dollar go further but also appeals to the tech-savvy demographic who prefer digital currency.
BTC vs. Fiat: What’s the Game Plan?
Cohen remains a bit coy about the future of the Bitcoin collected during the campaign. Will it be converted to fiat currency instantly, or will they hold onto it in hopes of riding out Bitcoin’s wild price swings? This decision isn’t just tricky; it also comes with regulatory implications, including the need to document Bitcoin price changes for transparency.
Crypto Contributions in Context
Although this isn’t the first time a PAC has embraced cryptocurrency, it’s a rapidly evolving space. During the 2017-2018 election cycle, a reported $570,000 in crypto donations flowed into U.S. political campaigns. This figure raises eyebrows, especially given past regulatory hiccups where states like California have hesitated, even banning Bitcoin donations due to transparency concerns.
Andrew Yang: A Champion for Crypto
Yang himself has cultivated a reputation for being pro-crypto and pro-blockchain. He’s previously called for clearer regulations within the crypto industry, aligning the dots between technology and politics in a manner not often seen before.
The Road Ahead
As Humanity FWD continues its campaign through August 14, one can’t help but wonder how other political entities might follow suit. Will we soon see other candidates jumping on the Bitcoin bandwagon, or is this just another flash in a pan? Only time— and the price of Bitcoin— will tell!
