The decision by Coinbase to form a Political Action Committee (PAC) as revealed in a document published yesterday by the United State Government attest to a rumour that cryptocurrency related platforms are dancing to the tune of the government, hence, may be moving towards centralization.
In a statement made available by the U.S. Federal Election Commission, it was confirmed that in June, Coinbase Inc., one of the most respected and popular exchange, fashioned a Political Action Committee.
In the real sense, Coinbase has not demanded from its community any donation to any government as of now. However, PAC, in firms is centered on funding political candidates purposely to gain support for their firms and not for their customers.
If noticed, crypto related firms have suffered massive crackdowns in recent time to the extent that Advertisement having anything to do with cryptocurrency are taken down by the likes of Facebook, Twitter, and even Google.
Elliot Suthers, the exchange’s communications director, established that the firm has launched PAC, making it the first cryptocurrency exchange to do.
Remarkably, CNN highlighted that Coinbase had donated over $81,000 for political moves, where $78,000 was donated to Brian Forde, former Advisor to ex-President Barack Obama on Science and Technology Policy, and the remaining was given to BIT PAC, which was used to fund Justin Amash and Josh Mandel candidatures who were Republicans.
The Race For Centralisation
One primary reason why people crave for cryptocurrency is that it does not involve the hands of the government. To the crypto world’s dismay, Government is doing everything to involve in cryptocurrency, especially this time that it has decided to categorize some coins as security.
Interestingly, Crypto Pundits like John McAfee have argued on several occasions that the government’s involvement in cryptocurrency is not emancipation but slavery.
What used to be the talk of the town among cryptocurrency lovers is that the idea is by definition, non-governmental. Until now, Bitcoin and other altcoins have stood independent of regulations and stiff government policies. As noticed now, government is trying to have central control over virtual currency, even more than they have on fiats. Through the introduction of taxes and necessary documentation of transaction and Know Your Customer (KYC) protocol brought into the system.
Facebook Created PAC In 2011
Facebook filed a paper to launch its Political Action Committee branded as FB PAC. The committee was launched to fund political candidates that have shared goals with Facebook, but the undertone, according to observers is purposely for lobbying.
In 2011, Facebook spent $550,000 for lobbying, jumping from $350,000 that the firm spent in 2010. In the same year, Google and Microsoft spent around $3.5 million lobbying.
PAC is an influential committee that the Government of the US cherishes since it helps them achieves some political steps, especially during an election.
Why Firms Form PAC
One significant reasons firms form PAC is to be involved in politics, although indirectly. The Ohio-based National Center For Middle Market pegged that the significant reason businesses form PAC is to donate money to fund political candidates. Meanwhile, the Federal law stipulates that business cannot contribute to candidates in federal elections directly, but through interest PAC.
Coinbase Restored On Facebook
Coinbase advertisement has mysteriously been restored on Facebook. It could be said that the restoration is coming after Coinbase was confirmed to be legitimate Facebook, discovered that the exchange is meeting the requirements stipulated by the Regulators.