Cryptocurrency and Churches: A Smart Move or a Risky Play?

In an increasingly digital era, some churches are exploring new avenues of accepting donations. One such avenue that's charting significant attention is cryptocurrency—churches accepting Bitcoin and Ethereum as forms of donation. But does it adhere to principles of stewardship that churches uphold? And how does a church balance the pursuit of modern technology with its mission?

The Case for Cryptocurrency in the Church

Here are some leading reasons why a church might consider cryptocurrency:

1. Expanded Giving Options: The adoption of crypto enhances the array of giving opportunities. Churches continually seek ways to make donations more accessible—online giving, card payments, text to give, etc. Adding crypto to the list could attract younger, tech-savvy believers.
2. Potential Asset Growth: Unlike cash, which retains its face value, cryptocurrencies could increase in worth. Donations received in crypto today could escalate in value before they are used, positively impacting the church’s finances.
3. Borderless Giving: Cryptocurrency transfers do not incur hefty international transfer fees. This makes it a more viable option for churches with international supporters or missionaries.

Cautioning the Risks and Challenges

Contrarily, there are risks and challenges associated with crypto donations:

1. Volatility: The market value of cryptocurrencies fluctuates wildly. While there might be potential for asset growth, they could also dramatically depreciate in value.
2. Regulations and Tax Implications: Cryptocurrency is considered property by the IRS. Accepting it as donations could bring on compliance issues and complicated tax rules.
3. Ethical and Theological Concerns: Cryptocurrency transactions can be made anonymously, meaning churches could unknowingly accept donations from sources that do not align with their biblical values.

Measuring Cryptocurrency Against Biblical Stewardship

Acceptance of bitcoin or any other cryptocurrency must align with principles of biblical stewardship:

• Transparency and Accountability: Churches must responsibly manage every donation received, irrespective of the form it was given in.
• Avoiding Unnecessary Risks: Cryptocurrencies' high-volatility nature can be equated to risky speculation, a practice that clashes with considered and wise planning advised in Proverbs 21:5.
• Aligning with Mission and Not Trends: If accepting crypto donations truly serves the church’s mission and supports Kingdom work, it's a valid consideration.

In conclusion, whether a church should accept crypto donations is largely dependent on your church's specific circumstance. Should you decide to embrace it, it should be done wisely, with a clear plan to manage the risks and maintain alignment with the biblical principles of stewardship.

Learn more about churches and cryptocurrency in our latest Healthy Church Staff Podcast episode.