Wikimedia Suspends Cryptocurrency Donations due to Concerns about Energy use

Due to environmental protection, the Wikimedia Foundation (WMF) has declared that it will no longer accept crypto donations.

After a three-month debate, Wikimedia’s parents made their decision at the end of last month. We began accepting cryptocurrencies directly in 2014 in response to requests from our volunteer and donor groups. 

Wikimedia stated, 

“We are making this choice based on recent feedback from those same groups.”

Around 70% of 400 users agreed with the plan to refuse crypto donations.

The WMF has accepted cryptocurrency donations in bitcoin, Bitcoin Cash, and Ethereum for the past eight years. All of these now employ energy-intensive proof-of-work (PoW) techniques. The World Monuments Fund stated that it received $130,100 in cryptocurrency donations from 347 donors in the previous fiscal year, accounting for just 0.08 percent of its total revenue. The most widely used money was Bitcoin.

We have never kept cryptocurrencies and daily spot-convert donations into fiat cash (USD), which has no substantial environmental impact,” the World Monuments Fund claimed.

However, given the token’s price growth since 2014, it admitted that converting “bitcoins to dollars as soon as they were received was a significant mistake.

The Wikimedia Foundation has decided to stop accepting cryptocurrency donations. The decision was made based on a community request that the WMF no longer accept crypto donations, which came out of a three-month-long discussion that wrapped up earlier this month.

— Molly White (@molly0xFFF) May 1, 2022

“Issues of environmental sustainability,” according to the paper, are a primary reason against bitcoin. However, a number of more energy-efficient blockchains, such as Avalanche, Tezos, Solana, and Cardano, do not require proof-of-work mining.

Also Read: Environmental Impacts of Cryptocurrency: Stronger Monitoring is Needed by US Lawmakers

Crypto supporters argue that the option to donate anonymously is critical in areas where Wikipedia is banned or censored.

writing for one of these crypto blogs must be wild. if someone didn’t make the argument you think they should’ve made, you can just make it up!

no one mentioned the central african republic in the discussion, probably bc BTC became legal tender there after the discussion ended

— Molly White (@molly0xFFF) May 2, 2022

With bitcoin becoming legal tender in El Salvador and the Central African Republic, the WMF effectively prevents users from donating in their home nations’ currencies.

Join our Telegram Channel to get the best notification regarding Pricing Prediction, Trading Analysis, News, Blogs, and interviews.