Hsiao Hsin-Chen, a politician from Taipei, recently made history by accepting political donations in the form of cryptocurrency, the first to do so in Taiwan. Chen is running for a seat in City Council. According to reports, multiple people have donated to Chen;s campaign in Bitcoin (BTC). All the donors have made an average $325 donation which is the limit for accepting non-cash political donations.
Hsiao promoting technological innovations during campaign
The political candidate declared last month that he will accept donations in virtual currency for his campaign. Chen supports technological innovations and advancements and is using this platform to promote evolving technology. Chen believes that introducing virtual currency will root out unfair as well as corrupt financial practices that are now a part of the political system of Taiwan.
Chen believes that he is promoting BTC by taking donations in digital currency which will help him to ultimately fulfill both his goals. He even stated that accepting Bitcoin in the form of a political donation actually is more symbolic. There is a constant fluctuation in the value of Bitcoin and other cryptocurrencies. It also means that even though the restricted amount for donation for political campaign is $325; its value can grow significantly or shrink in the coming weeks or months.
Analysts want Taiwan authorities to come out with crypto-related regulations
Taiwan as of now does not have any regulatory guidelines for cryptocurrencies. The leading financial institutions of the country including Control Yuan and Central Bank of Taiwan are in the process of creating guidelines for the use of virtual currencies in the country. Now that the growth of digital currencies is unstoppable, analysts believe that it is high time that the country works out a regulatory system at the soonest.
Control Yuan even made a suggestion that if due to fluctuations in the value of Bitcoin, the value of donations goes above the stipulated $325 then the political campaigner should return the donation to the donor. The campaigner can also surrender it to Control Yuan for avoiding violations in political campaign finance.
