FEC Allows Bitcoin Donations to Political Action Committees

According to the Washington Post, the Federal Election Commission voted unanimously in May 2014 to allow political action committees (PAC's) to accept bitcoin donations or purchase them, but they must sell the bitcoins and convert them into U.S. dollars before they are deposited into an official campaign account. The commission did not approve the use of bitcoin to acquire goods and services. This is one of the first rulings by a government agency on how to treat the virtual currency.

Bitcoin is a virtual currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men, there are no transaction fees and the transaction can be anonymous. Check out this infographic by CNN explaining Bitcoin:

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