Wikimedia community supports proposal to stop foundation from accepting crypto donations

The majority of Wikimedia users voted in favor of a proposal asking the Wikimedia Foundation not to accept donations in cryptocurrency.

A Tuesday update stated that 71% of the 326 Wikimedia contributors responded to the proposal. This is 232 out the 326. Wikimedia Foundation, the non-profit that hosts Wikipedia, requested that cryptocurrency donations be stopped by the Wikimedia Foundation. Arguments in support of the proposal included environmental concerns around Bitcoin (BTC), and “the risk to Wikimedia Foundation’s reputation for accepting cryptocurrency donations.”

Jan. 10 was the first day that the community opened the request for comments. The discussion expanded to include topics such as El Salvador adopting Bitcoin as legal tender, cryptocurrency as a tool to illicit financial activities and the role of digital assets in financial inclusion. The majority of topics were focused on energy consumption and the potential environmental impacts of cryptocurrencies.

The original proposal stated that “Cryptocurrencies might not align with Wikimedia Foundation’s commitment to environmental sustainability.” “Bitcoin (and Ethereum) are the most widely-used cryptocurrency, and they both use a lot of energy […]. The current models are still extremely harmful to the environment. There are more eco-friendly cryptocurrencies but they are not as widely used.

Some of the arguments against the proposal were proof-of-stake crypto currencies that are “way less energetic-intensive” and use tokens to provide “safer methods to donate and engage with finance for people in oppressive nations.” Another user pointed out the bad reputation of the technology by citing the Ukrainian government accepting cryptocurrency donations.

C933103, a user on March 14, stated that “Crypto should be retained as an option for Wikimedia in order to accept donations.” “Wikimedia accepts donations in crypto, not giving out crypto.” If a country prohibits donation to the Wikimedia Foundation (or WMF) through banks, it is not WMF but the country in trouble. Donations that are accepted instead of being given out will not be used for any new economic activities which could be sanctioned or funded by other illegal activities. All currency received will be immediately converted into fiat currency in WMF’s account.

What is that rumbling sound in the distance? It’s slowly growing louder. It is the stampede crypto-zealots shouting “guess I’ll take my cash elsewhere!”
Molly White (@molly0xFFF), April 13, 2022

TrueAnonyman, a Wikimedia contributor, supported the idea, adding:

“The financial impact of not accepting crypto donations would have minimal effect, but the reputational damage to Wikimedia project of being seen as endorsing a technology that is so closely tied to many environmental and social harms would be significant.”

Similar: Wiki accepts crypto donations despite being pressured to stop

In January, the foundation reported that it had received $130,000 in crypto donations during its last financial year. This is roughly 0.08% from its revenues. Bitcoin was the most popular cryptocurrency among 347 donors, but Ether (ETH), and Bitcoin Cash (BCH) were also accepted by the nonprofit.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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