Wikipedia may stop accepting cryptocurrency donations due to reputation risk

The Wikimedia community has supported a proposal to ban its foundation from accepting cryptocurrency donations. According to the voting results published on Tuesday, approximately 71%, or 232 out of 326 Wikimedia members (the non-profit organization that manages the processes of the No. 1 encyclopedia) were in favor of stopping accepting donations in cryptocurrency. The arguments in favor of this decision included environmental issues related to bitcoin transactions and the risk to reputation associated with accepting crypto payments.

Initially, the participants' position was less categorical. «Cryptocurrencies may not be in line with the Wikimedia Foundation’s commitment to environmental sustainability,» the initial discussions said. «Bitcoin and Ethereum are two of the most commonly used cryptocurrencies, and both run on PoW, consuming huge amounts of energy […] these models of operation cause enormous environmental damage. Although there are more environmentally friendly cryptocurrencies, they are less widely used.»

However, in April, the categorical statements of the project’s contributors intensified. «The financial effect of stopping accepting donations in cryptocurrency will be minimal, and it will be far outweighed by the reputational damage to the Wikimedia project associated with the endorsement of crypto technology. Cryptocurrencies are closely related to various environmental and social issues,» said a panelist under the name TrueAnonyman.

It is worth noting that cryptocurrencies do indeed occupy a small place in the financial structure of the project. In January, the foundation reported that it had received about $ 130,000 in cryptocurrency donations in its last fiscal year, which is about 0.08% of its revenue. Bitcoin was the most popular form of crypto donation among the 347 people who donated, but the foundation also accepts ether (ETH) and bitcoin cash (BCH).