BY ZACH WILLIAMS | U.S. Senator Rand Paul was in town Sunday to raise support and money for his fledgling bid for the Republican presidential nomination at a fundraiser sponsored by local Bitcoin enthusiasts.
The free-market-friendly candidate from Kentucky expressed support for wider adoption of the digital currency during his remarks at the Union League Club on E. 37th St. His presidential campaign is the first to accept Bitcoin, which allows users to exchange funds anonymously outside traditional government oversight.
“We’re trying to get you to empty your Bitcoin wallet,” Paul quipped at the outset, before adding: “I’m not an expert on Bitcoin. I’m open to new technologies. I’m excited by the possibility and the concept.”
Federal Election Commission rules currently say little about the role of Bitcoin in presidential campaign fundraising, according to a spokesperson. A 2014 advisory opinion, though, recommends that political committees not affiliated with a campaign limit themselves to accepting donations equivalent to $100. Committees can also purchase Bitcoin on the open market as an investment.
Several dozen local users of the digital currency attended the April 19 fundraiser, which included a private meeting with high-rolling donors. Austin Alexander — a founding member of the Bitcoin Center NYC, on Broad St. — urged others at the event to get their smartphones out so that campaign members could collect contributions as they walked around the room.
“Get your cameras ready to scan Senator Paul’s QR code,” he said. “And remember, the max donation is only $2,700.”
A Paul representative did not provide fundraising totals from the event, Bitcoin or otherwise. The current exchange rate is about $225 to one Bitcoin, a notable decline from the digital currency’s all-time high value of about $1,250 in 2010.
Local users can now pay for almost anything with the currency in Downtown Manhattan, including groceries, real estate and even college tuition. But greater integration into the economy has been limited due to concerns that Bitcoin enables nefarious activities through its privacy protections.
Supporters remain optimistic that they will overcome setbacks, especially if Paul gets elected president in 2016.
“Bitcoin is still in the embryonic stages,” said Robert Morgan, a backer of the virtual currency. “The Bitcoin community is going to want to stop the government from regulating it, and Rand Paul is the guy who wants to stop it.”
