The rise in Crypto Bail Funds
The growth of cryptocurrencies has presented extensive use cases that are being discovered each day. One of the most recently discovered use cases of cryptocurrencies is its use in bail payments. Bail is written consent from the court, allowing an individual charged with a criminal offense to be out of jail as they await their trial or the case’s decision. In determining bail cases, the judge examines different factors to determine the severity of the case, including if the accused is already has other charges at the time of the arrest. Therefore, for accused persons, bail is the only option for securing their freedom. This article will look at the recent rise in bail payments in the U.S. and the factors contributing to it.
Bail Funds Overview
As mentioned in the intro, bail set by a judge must be paid for an accused person to secure freedom while awaiting trial. While most accused persons would prefer to be free as they await the trial’s outcome, not everyone can readily pay the bail, primarily low-income earners.
Research conducted by the Bail Project indicates that failure to pay bail resulting in the accused person to spend a single night in prison has significant implications on the side of the accused. An individual can easily lose a job, custody of their children, or even a home. Awaiting trial in jail also improves a detainee’s chances of going to prison, as established by a report on cash bail by the Brennan Center for Justice.
To cater to the needs of low-income earners, organizations such as the Bail Project, the Chicago Community Bond Fund, and the Nashville Community Bail Fund offer bail payment help to those who can’t afford it. These organizations crowdsource funds that are then used to pay bail accused persons out of jail as they await trial.
Bail has a significant effect on the fight for social issues, civil rights, and even elections. If a majority of the citizens cannot access bail, they are less likely to participate in street protests or civil actions to fight for their rights. In turn, this will curb the citizen’s right to assembly and free speech.
Bail also has a negative consequence on elections. It curtails an individual’s ability to vote since they are held in detention. Additionally, if an accused person held in custody pleads guilty to serious charges such as a felony, their voting rights can be restrained for years.
Cryptocurrency Adoption in Bail Funds
An individual needs to pay a particular amount of money to secure his release on bail. In recent years, particularly in 2020, there has been a significant increase in bail payment using cryptocurrencies. Bail payments using cryptocurrencies have primarily been influenced by the increased donations in cryptocurrencies.
Since 2018, there have been enormous crypto donations; notably, Pineapple Fund donated 5 057 bitcoin ($ 55 million at the time) to 60 charities, GiveDirectly donated 274.3 BTC ($2.1) million to the Institute of Justice, Ripple Co-Founder donated $25 Million in XRP to San Francisco State University, Ripple donated $29 million in XRP to the DonorsChoose charity fund and $50 million to 17 universities as part of its University Blockchain Research Initiative.
In the U.S., crypto bail funds are being spearheaded by several crypto payment processors, including The Giving Block, the Bail Project, the Chicago Community Bond Fund, and the Nashville Community Bail Funds. These platforms accept crypto bail payments involving several cryptocurrencies such as bitcoin (BTC), basic attention token (BAT), and ether (ETH).
What has led to an Increase in Crypto Bail Funds?
The recent rise in crypto bail funds in the U.S. is thought to be contributed mainly by the increase in civil violence and protests across the U.S. There has been a rise in a civil action against police violence in the U.S protesting for equality and a stop to racial discrimination. The Black Lives matter streets protest over the police killings of George Floyd, and Breonna Taylor saw the arrest of numerous protestors.
As the number of arrested protestors increased, The Giving Block recorded an increase in individuals interested in using the infrastructure to process cryptocurrency payments. The Giving Block is among the few organization’s member bail funds in crypto. Apart from the Giving Block, some notable organizations that accept crypto bail funds include the Richmond Bail Fund, Chicago Community Bond Fund, and the Nashville Community Bail Fund.
Benefits of Crypto Bail Funds
There are several benefits of bail funds organizations accepting donations using cryptocurrencies. Some of the most notable benefits include:
- Offset Economic Loss
Bail funds organizations accepting donations in cryptocurrency counterbalances economic loss as they can diversify their revenue and donations stream.
- Enhances Bail Fund Donations
By accepting cryptocurrency bail donations, bail funds organizations can enhance their total funds’ donations. This is because crypto donations target a new segment of donors constituted by the growing adoption of cryptocurrencies. For instance, Bitcoin appeals to a younger demographic, thus are more likely to donate.
- Seamless Way for International Donors
Through crypto donations, international donors can contribute easily to the funds. For instance, The Giving Block’s Crypto for Black Lives campaign formed to raise money for civil organizations, including bail funds, received considerable donations from international donors due to the ease of donations using cryptocurrencies.
- Crypto Donations are not taxed.
An essential aspect of crypto donations that make it ideal for bail fund organizations is that they’re not taxed. Cryptocurrency donations to nonprofit organizations are treated like donations of stock thus are not subjected to taxation. Therefore, bail fund organizations do not need to pay capital gain taxes in cases of crypto adoption.
Closing Words
Street protests and civil actions against police violence witnessed in the U.S. during the summer lead to numerous arrested prosecutors seeking bail. As such, there was an increase in bail funds donations to secure the release of protectors. Several bail fund organizations have started accepting crypto donations- a move that has seen the rapid rise in bail fund donations. Bail funds organizations should step up and accept crypto bail funds donations as it comes with plenty of benefits such as enhancing the stream of revenue and donations and evading hefty taxes.