Should the church accept cryptocurrency as tithes and offerings?
There has been an ongoing debate over the legitimacy of cryptocurrencies, and whether the church can accept cryptocurrency donations. In this article, we will discuss the nature of cryptocurrencies, what tithing means, what cryptocurrency donations mean to churches, and how to deal with cryptocurrency donations within church communities.
What are cryptocurrencies?
Cryptocurrencies are digital currencies that use cryptography to secure transactions and control the creation of new units. (“Globe Exchange Review – Is Globe Exchange A Good
Fit For You?”) There is no central authority controlling cryptocurrency like traditional currencies, nor do they have a physical form like paper money.
It is possible to exchange cryptocurrency for goods or services in the real world. The most famous example is Bitcoin, which has become synonymous with cryptocurrencies even though it is not the only one around anymore.
Cryptocurrency is also known as virtual currency because it is not issued by any government or central bank; instead, users generate them through computer processing power: mining
(Learn more here Coinbase, Binance Luno, etc. *Please note these are affiliate links, this means I get rewarded if you decide to enrol in any of them*). Find out local laws about cryptocurrencies every country is different.
What does it mean to tithe and offer?
Tithing is a biblical command. The tithe, or tenth of one’s income, is mandatory in the Bible and has for thousands of years, both Jews and Christians have practised this. It is an act of recognizing God as our creator and provider and therefore giving back to Him 10 per cent of what he has provided us. Give, and it will be given to you. Good measure, pressed down, shaken together, and running over, will be put into your bosom. For with the measure that you use it will be measured back to you (Luke 6:38). Tithing is also a means of “giving back” to God what belongs to Him: our time, talents, possessions, and obedience (Malachi 3:10). The tithe supports the local church where we worship; it provides funding for larger projects such as building facilities or mission work outside the church walls; it helps ministries within the congregation grow stronger; it ensures that pastors are paid fairly for their work leading God’s people in worship services; it gives them more free time to devote themselves fully to spreading his word through preaching sermons during Sunday morning services and being there when he is needed for support.
What does it mean to offer? In the New Testament, offerings are a way of expressing gratitude to God. They reflect a conscious desire to give back what we have received and may include time, talents, and money. The offering has always been an extension of worship in the Christian faith. It is an opportunity to express gratitude through our gifts.
Can a church accept cryptocurrency donations?
You can use cryptocurrency to pay tithes and offerings to your church, but you need to understand that cryptocurrency is different from the usual payment methods.
Cryptocurrencies are considered a form of property. In other words, cryptocurrencies are not cash or currency; instead, are stocks in one company or another (just because it has value does not mean there is an actual entity behind the coin). This means that if you buy $100 worth of Bitcoin with cash and then sell that same amount later for $200, you will have to declare this as income on your taxes and pay taxes accordingly. However, if instead of selling your coins right away or buying them in the first place you hold onto them until their value increases significantly over time (and declare all gains), then those additional profits are capital gains rather than ordinary income.
If this sounds complicated and confusing now, just wait until we get into how cryptocurrencies work! The bottom line: Although churches may accept cryptocurrency as tithing or offerings when passed from one person to another, it should still be managed just like any other asset, regardless of its value at the time of the gift (which could change dramatically over time).
What should a church do if someone offers it cryptocurrency as a donation?
If a church decides to accept cryptocurrency donations, it should have a plan in place for how to do so. The plan should include:
- What will happen to the cryptocurrency? A member of the church board may or may not be involved in managing digital currencies; it could be an outside contractor.
- How to convert the cryptocurrency into cash or another form that can be used by the church.
- Security measures for protecting both physical and digital assets, especially when dealing with substantial amounts of value stored digitally for extended periods of time
If you are a church leader, here are things to consider:
- Do you want to accept cryptocurrency donations?
- Does your church have the technical expertise to manage cryptocurrencies?
- What are the pros and cons of accepting cryptocurrency donations?
If you want to tithe or make an offering using cryptocurrency,
If you want to tithe or make an offering using cryptocurrency, go for it. Just be sure you are aware of how it will be managed by your church.
If the church decides to accept a cryptocurrency donation, there are two possibilities:
- The church will convert the crypto token into cash and deposit the money into their bank account for regular use. This is what most churches will do initially because they cannot easily spend crypto tokens on day-to-day operations.
- You may have questions about this approach and whether it feels right but remember that these decisions are made by church leaders who have experience handling church finances and decide in the church’s best interest
Accepting cryptocurrency for tithing and offerings is a way for churches to remain relevant in a new technological world. Cryptocurrencies, especially Bitcoin, are rapidly gaining popularity and acceptance in our society. They are also gaining popularity and acceptance in the church. In the next few years, it may be commonplace and ordinary for all churches to accept cryptocurrency donations as they always have accepted offerings of otherworldly forms such as cash, checks, and credit cards.