Digital currency donations are now welcome, which benefits both donors and the university.
The first person to donate cryptocurrency to San Diego State University wants to make sure that he is not the last.
Officials at The Campanile Foundation say the Bitcoin gift, which was received in October, opens the door for similar contributions and a wide range of research and teaching programs in cryptocurrencies that have never been seen before.
The donation was made by a graduate who wanted to remain anonymous, and the donation came via a round number of satoshis, the primary unit of account in Bitcoin, not in US dollars and carrying a current value of just under $25,000.
David ForemanThe Campanile Foundation’s chief financial officer said the SDSU will keep nearly all contributions in the form of Bitcoin rather than converting all to cash immediately as many other universities have done.
The result is what Fuhrmann calls a “quasi-endowment” that departs from the traditional practice of never spending capital in an endowment. Führmann said that in the Montezuma & Satoshi crypto fund, as it is called, 1% of holdings will be withdrawn each quarter for one or more campus programs “to explore the uses and explore how SDSU might interact with cryptocurrency and bitcoin specifically.”
This could include helping to train the student to further research how to “institutionalize” cryptocurrency at SDSU. Future uses could also include a recognized student organization for crypto-lovers at SDSU, or work toward a system to allow broader digital transactions at the university.
“If the value of bitcoin goes up, this giveaway could go on forever,” Fuhrmann said. While the SDSU approach showcases the value of potential losses from the downturn in the cryptocurrency market, “in the long run we believe this can be really beneficial for SDSU.”
“It’s all new,” he said. “It’s exploratory.”
Created in 2009, digital forms of financial exchange are now valued at more than $2 trillion worldwide. Keeping the gift as cryptocurrency was also the wish of the benefactor, a former college student and residential housing aide.
Raja JennyTalks with the donor initially focused on a scholarship or annual pledge to support housing efforts, said URAD, a co-director of the Office of Housing Administration and University Relations (URAD), but focused on his desire to help SDSU adopt the new technology more quickly.
“The donor envisions a future where both donors and students understand the value and utility of bitcoin and other cryptocurrencies in supporting SDSU, including receiving and spending on campus.”
With the continued rise of crypto assets around the world, Fuhrmann said that SDSU’s entry into the arena will help it engage with potential donors who have “interests in unique areas,” and younger donors who may have unorthodox attitudes toward wealth creation.
Donor Master Gift already allows other donors to donate using Bitcoin and Ethereum. After his gift, four additional donations increased the first contribution. SDSU uses a platform called Kraken to carry out cryptocurrency exchanges.