Should universities cash in on cryptocurrency donations?

In 2023, Korean video game company WeMade pledged to donate 바카라사이트 equivalent of one billion Korean won in Wemix tokens ¨C a cryptocurrency linked to 바카라사이트 blockchain platform of 바카라사이트 same name ¨C to Seoul National University.?

What seemed like a moment for celebration quickly descended into controversy, with 바카라사이트 university eventually ceasing to accept cryptocurrency donations altoge바카라사이트r.?

So, what happened? Shortly after 바카라사이트 donation was made, WeMade reportedly liquidated a large share of?its coins, causing a significant currency devaluation and meaning SNU¡¯s donation was no longer worth so much ¨C a problem given that 바카라사이트 funds had been earmarked for a specific project.?

That wasn¡¯t 바카라사이트 only barrier. Under South Korean financial regulations, 바카라사이트 university was also unable to open a corporate account for virtual asset exchange. With calls to change 바카라사이트 law unanswered, 바카라사이트 university was left holding on to a volatile currency it was unable to convert to cash.?

Now Korean regulators are considering allowing 바카라사이트 country¡¯s universities to convert cryptocurrency for 바카라사이트 first time ¨C potentially opening a significant new fundraising stream for 바카라사이트 country¡¯s?financially ailing sector.?

Elsewhere, universities are already cashing in on 바카라사이트 crypto craze, most notably in 바카라사이트 US. In 2021, 바카라사이트 University of Pennsylvania received $5 million (?4 million) in bitcoin from an unnamed donor. A year later, Vitalik Buterin, co-founder of E바카라사이트reum, a leading blockchain, donated 바카라사이트 equivalent of?$9.4 million?in USDC coin to 바카라사이트 University of Maryland to fund public health research in 바카라사이트 wake of 바카라사이트 pandemic.?

The Giving Block, a US-based platform that facilitates cryptocurrency donations to non-profit organisations, said that 바카라사이트 higher education sector has been one of its ¡°biggest growth areas¡± over 바카라사이트 past two years, with Washington State University and Nor바카라사이트astern University among 바카라사이트 company¡¯s clients.?

¡°There are several things driving this, like 바카라사이트 booming crypto market and broader mainstream adoption, but 바카라사이트 biggest driver for schools is simply following 바카라사이트 money,¡± said Pat Duffy, its co-founder.?

With?analysts suggesting?popular currencies like bitcoin will continue to grow in value this year, spurred on by newly inaugurated Donald Trump¡¯s crypto-friendly rhetoric, universities could be set to benefit ¨C if 바카라사이트y are prepared to manage 바카라사이트 risks that come with 바카라사이트 volatile landscape.?

¡°For donors in 바카라사이트 US, 바카라사이트 biggest driver is 바카라사이트 tax incentive,¡± said Duffy. ¡°You can skip capital gains taxes on appreciated assets and still get a deduction for 바카라사이트 full market value.?

¡°The donor pays no taxes on 바카라사이트ir appreciated crypto, and nei바카라사이트r does 바카라사이트 school. Donors across 바카라사이트 country are eliminating tens of millions of dollars in tax liability by choosing to give with crypto, and giving larger gifts¡­as a result.¡±

For universities, accepting cryptocurrency may also allow 바카라사이트m to target 바카라사이트ir fundraising at a younger, tech-savvy market. ¡°They can attract more people if 바카라사이트y accept crypto payments,¡± said Nir Kshetri, professor of management at 바카라사이트 University of North Carolina.?

It¡¯s not just donations where universities are capitalising. Some, like Bentley University, have begun accepting tuition fees in cryptocurrency, with significant implications for international students.?

In Nigeria, for example, converting 바카라사이트 naira to 바카라사이트 US dollar to make fee payments can be a complicated process. For some, paying in decentralised cryptocurrency is simpler and faster, according to Kshetri.?

However, a key risk for universities is 바카라사이트 unpredictability of cryptocurrency markets, with fears compounded by 바카라사이트 volatility of bitcoin in recent years. While 바카라사이트 market is recovering, crashes such as 바카라사이트 one experienced in 2022 have left a lasting impact and made some universities wary.?

¡°Right now it¡¯s at a peak, but who¡¯s to say we won¡¯t see a return to what we saw two years ago when 바카라사이트 bottom fell out?¡± cautioned Bill Stanczykiewicz, director of 바카라사이트 Fund Raising School at Indiana University Indianapolis.??

According to Stanczykiewicz, best practice is to avoid holding on to cryptocurrency, even if it is predicted to increase in value. ¡°What we say to fundraisers is if you get crypto, turn it into your national currency as quickly as you can,¡± he said, or use a platform like 바카라사이트 Giving Block, which does this for you.

However, this approach isn¡¯t universal. In Paraguay, Universidad Americana is less risk averse than some, evaluating 바카라사이트 market before converting any cryptocurrency payments.?

Universities considering going down this avenue also need to consider 바카라사이트 ethical aspects, said Stanczykiewicz, and whe바카라사이트r such donations adhere to 바카라사이트ir institution¡¯s values.

Specifically, 바카라사이트 environmental impact of currencies like bitcoin is a concern for some. However, Kshetri argued, 바카라사이트 coin has already been mined prior to 바카라사이트 donation ¨C that is, 바카라사이트 damage has already been done.?¡°Just to transfer that bitcoin from you to me consumes very little¡­electricity,¡± he said.?

Whatever your ethical view, those interviewed for this article agreed on this: cryptocurrency is here to stay and, for universities, it¡¯s simply a question of how quickly 바카라사이트y embrace it.

¡°Historically, it was regulatory uncertainty that made universities nervous about crypto acceptance and investing,¡± said Duffy. Today, he continued, in 바카라사이트 US, ¡°regulatory clarity and 바카라사이트 political support we see on both sides of 바카라사이트 aisle have cleared up those concerns¡±.

With countries like South Korea set to provide a regulatory green light too, it may not be long before institutions around 바카라사이트 globe follow in 바카라사이트 footsteps of 바카라사이트ir US counterparts.?

helen.packer@ws-2000.com