Donations for political campaigns has long been a controversial issue. Now with the recent crypto-buzz, advocates of digital currency have been pushing for the acceptance of cryptocurrencies as donations in political campaigns.
Clovr noticed this recent trend and decided to look into it even further. Especially in a time of political uncertainty in the United States, will adding cryptocurrencies into the donation mix really make a difference or will it simply complicate the issue? Read all about Clovr’s recent study and the results may surprise you.
To conduct this study, Clovr surveyed 1,023 registered U.S voters.
Should Cryptocurrencies Be Treated Equally to U.S Dollars?
According to the results of the study, 60% of registered voters in the United States claim that, when it comes to political donations, cryptocurrencies should be treated equally to U.S dollars. Only 21% disagreed.
Currently, there is a federal law in place that only allows in-kind cryptocurrency donations that are limited to $100. This means that voters can donate items, equipment, supplies or any other such miscellaneous item, whereas U.S dollars can be received in checks, cash and credit card transactions. This obviously shows that, right now, cryptocurrencies and U.S dollars are in no way treated equally – even though the majority of study participants would want them to be.
Are Cryptocurrencies Safe Enough for Political Donations?
When asked whether digital currencies were secure enough to be used for political purposes, 54% stated they are. Despite the common misconception regarding cryptocurrency’s safety, only 26% claimed they did not believe it was secure enough. This misconception if often attributed to lack of knowledge on how digital currencies work, which Clovr also discovered in their study.
When asking the same question to participants that claimed to be extremely knowledgeable on the technology of cryptocurrencies, the number instantly jumped to 73% who stated security was not an issue.
Are Cryptocurrencies Stable Enough for Political Use?
The question of stability posed more of a concern for registered voters. Given the widespread price fluctuations of cryptocurrencies throughout the year, people do not consider digital currencies as stable as they consider them safe. 42% expressed they are stable enough for political use, whereas 35% claimed they are not. When exclusively asking the same question to crypto-savvy voters, the number jumped to 62% who believed digital currencies are financially stable for political donations.
Industry experts have expressed confidence that cryptocurrencies will gradually become more accepted as their prices stabilize for longer periods of time.
Will Cryptocurrency Donations Increase Political Contributions?
Clovr’s study discovered that 25% of eligible U.S voters are in fact more likely to contribute to political campaigns if cryptocurrency donations were allowed. This is an interesting statistic when you consider how political candidates and their campaign directors are constantly seeking different ways to increase donations. The use of cryptocurrencies as a form of contribution appear to be an option.
Will Foreign Involvement Increase with Cryptocurrency Donations?
Ever since Donald Trump took office, the topic of foreign involvement has gained a large amount of coverage. This possibly resulted in 60% of study participants claiming that if cryptocurrencies were involved in the political system, foreign interference would be increasingly common. Merely 15% expressed that it would not make a difference.
In this part of the study it started becoming evident that people were more concerned with political candidates and parties manipulating the cryptocurrency donation system, than the actual technology behind digital currencies.
Are Cryptocurrencies More Likely to be Used Illegally in the Political System?
Following a similar pattern to the previous results which conveyed a certain mistrust in the political system overall, 62% of respondents believed digital currencies were more likely to be used illegally by politicians. When asked the same question, but this time regarding political parties specifically, 56% of voters claimed it was more likely for these parties to take illegal advantage of cryptocurrency donations.
Once again, this shows a lack of trust in the politicians and political parties and not necessarily in the blockchain and cryptocurrency technology.
Verdict: Is the Political System Ready for Cryptocurrencies?
Cryptocurrencies have gotten their foot in the door when it comes to political donations but are far from being equal to U.S dollar contributions. Through their recent study, Clovr discovered U.S voters would actually want them to treated equally and consider them safe enough to do so. Certain voters even claimed the addition of cryptocurrencies as a donation method would encourage them to make more contributions.
Most concerns were posed regarding their stability and illegal use, but these results were attributed to U.S citizens gradually losing their trust in their political system overall and not on the cryptocurrency technology itself. Thus, Clovr concluded that cryptocurrency donations would be welcome in the U.S.