2 Things The Church Should Know Before Accepting Crypto Giving

Blockchain’s dynamic nature and its technological innovation keep making rounds across all sectors, providing them with endless opportunities to enjoy its full benefits laced with unique experiences.

In my previous article, “There are good reasons why churches need to receive offerings and donations in cryptocurrency,” I discussed how the church can leverage the potential of this technology by implementing a number of tried-and-true digital strategies that not only help with fund accountability but also increase the chances of receiving from benevolent givers and donors all over the world.

While it may appear to be an intriguing idea for the church to consider accepting offerings and donations in cryptocurrencies in order to combat financial misconduct and misappropriation, the church must also build the capacity of people with the rich experience required to handle some potential risks associated with this new approach.

As part of the long term value of blockchain technology rewards, they come with precautionary measures that have to be put in place to avoid some common issues.

This post seeks to examine two main areas that represent certain potential risks that must be avoided at all costs.

1-Illicit Funding

The church must take precautions to avoid some common issues, such as illicit funds being funneled into the account, because, aside from the most vulnerable financial institutions, the eyes of the law are trained on other vulnerable avenues where money can be laundered, and religious bodies, including the church, are no exception.

Due to the high likelihood of cryptocurrencies being exploited for criminal purposes, the church must exercise extreme vigilance in how it takes funds and donations in cryptocurrencies. Churches must evaluate the legalities of accepting gifts from givers and contributors.

2-Crypto Volatility

The church should either form a committee to assist in monitoring and converting incoming cryptocurrencies donations to hedge against the volatile nature of cryptocurrencies, or accept only stable coins to help solve this particular issue.

All of the possible hazards associated with the church accepting crypto gifts and donations from joyful contributors can be addressed by the church leadership. And following these two suggestions will assist you prevent both losses and penalties. Don’t forget that, despite their growing popularity, cryptocurrencies still have their detractors.

And here’s my summation of the overall message for the Church: “never run out of a reliable support system.” The blockchain technology is altering the global economy and is determined to keep its promise of making inroads into all sectors, including the church. Keep an eye out for more.