according to the materials of the site - By BTC Peers
On Sunday, Elon Musk confirmed that his newly formed American party will accept payments in bitcoins. The Tesla CEO called traditional fiat currency 'hopeless' when asked about the party's position on cryptocurrency X. According to Cointelegraph, Musk's statement was a direct response to users' questions about the acceptance of digital assets.
The formation of the American party followed a poll on Musk's social media platform, in which 1.24 million people voted. Almost two-thirds supported the creation of a new political movement. Musk announced the official launch of the party on Saturday, positioning it as an alternative to the Republican-Democratic system. CNBC reports that the party was registered with the Federal Election Commission on July 6 under registration number FEC-1898441.
The political movement arose from Musk's disagreements with President Donald Trump regarding fiscal policy. Musk criticized Trump's 'One Big Beautiful Bill' that adds $3.3 trillion to the national debt over the next decade. Previously, the Tesla chief led the Office of Efficiency in Government under Trump, but resigned in May after his term ended.
Why this support for bitcoin matters
Musk's acceptance of bitcoin reflects his long-standing support for digital currencies compared to traditional monetary systems. Tesla owns 11,509 BTC worth about $1.26 billion, making it the ninth-largest publicly traded company with bitcoin reserves. The electric vehicle manufacturer acquired bitcoins worth $1.5 billion in early 2021, becoming one of the first major corporations to hold cryptocurrency in its treasury.
The position of the American party regarding cryptocurrency could affect political fundraising methods and campaign financing. Bitcoin transactions offer lower fees compared to traditional payment systems and allow for global donations without cross-border banking restrictions. A study by Security.org shows that 28% of American adults now own cryptocurrencies, and 60% expect their value to increase during Trump's second presidential term.
Political movements accepting bitcoin face regulatory challenges as campaign finance laws evolve to address the issue of digital assets. The American party must comply with complex compliance requirements while maintaining transparency in tracking donations. We previously reported that 15 U.S. states are moving forward with plans to reserve bitcoins, demonstrating the growing acceptance of cryptocurrency assets by state governments.
The timing coincides with the rise of institutional acceptance of bitcoins across many sectors. Corporate treasuries, investment funds, and government institutions continue to add bitcoins to their portfolios. This trend lends legitimacy to political organizations considering the adoption of cryptocurrency.
Industry implications for political financing
The integration of bitcoins by the American party could change the approach of political movements to fundraising and financial operations. Traditional campaign financing largely relies on bank transfers, credit card processing, and cash donations. Cryptocurrency offers an alternative system with faster transaction processing and reduced intermediary involvement.
Other political organizations may follow Musk's example if the American party successfully implements bitcoin payments. This precedent could encourage both established parties and new movements to explore the integration of digital assets. This shift will require new regulatory frameworks concerning cryptocurrency in political financing.
However, the volatility of bitcoin's price creates budget management challenges for political campaigns. Donations received in bitcoins can fluctuate significantly in value between receipt and conversion into operational funds. Campaign treasurers must develop strategies to manage the impact of cryptocurrency while adhering to reporting requirements.
This development also amplifies the growing intersection between technology leaders and political influence. Musk's vast wealth and social media reach provide unique resources to challenge traditional political structures. His advocacy for bitcoin through the American party could accelerate the acceptance of cryptocurrency in government and public policy.
Party movements have historically faced structural obstacles in American electoral systems. Despite these challenges, Musk's focus on strategic elections for the House of Representatives and Senate, rather than presidential campaigns, suggests a pragmatic approach. The American party's acceptance of bitcoin could attract technology-oriented voters and sponsors who share skepticism about traditional financial systems.
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