Wikipedia will now be accepting bitcoin donations. Wikimedia’s partnership with Coinbase allows for the processing of these donations, according to a recent statement from the company.
This news isn’t surprising, given that back in March, Jimmy Wales, the co-founder of Wikipedia, accidentally started a bitcoin donation campaign. Upon opening his Coinbase wallet, he revealed the wallet address on the popular social networking site Twitter. Since Wales received so many random donations, he went on to state he would offer up all the proceeds to the Wikimedia Foundation. This incident showed how effective Bitcoin could be in facilitation donations for Wikipedia and those involved in it.
“I’m planning to re-open the conversation with the Wikimedia Foundation Board of Directors at our next meeting (and before, by email) about whether Wikimedia should accept Bitcoin,” he then shared in a Reddit thread.
The Wikimedia Foundation is not really planning to hold any bitcoin; therefore, bitcoin will simply be another mode of payment, not unlike VISA instead of PayPal. Upon receiving the donation, Coinbase will immediately convert the bitcoin amount into USD. This way, Bitcoin’s unpredictability won’t impact any donations. During the accidental campaign last year, the Wikimedia Foundation was able to raise $18.7 million.
The Wikimedia Foundation is simply a partner for Coinbase, in comparison to other Coinbase merchants who have to pay fees after transactions of over $1million. Non-profits like Wikimedia receive one major benefit: they won’t have to pay any transaction fees, ever.