Digital Asset Committees

Each Church, Charity, or Non-Profit Organization should establish a digital asset committee of 3 to 5 members to monitor the digital asset programs of that organization. The committee members should work with the organization staff for planning purposes and digital asset policies. Along the same lines, each organization committee should work with Digital Asset Ministries for training and general networking. The sections below describe digital asset issues that should be addressed by each organization committee.

Digital Asset Selections

The digital asset committees of each organization should choose the digital assets to receive as donations. The recommended assets are Bitcoin, Ethereum, and U.S. Dollar Stablecoins. As digital protocols become more advanced and regulated, other alternative coins (alt coins) could be considered. This would include protocols like Polygon (Matic), for example, which is a “layer two” or “sidechain” scaling solution that runs alongside the Ethereum blockchain. Again, it will be up to each organization committee to determine which assets to receive as donations.

Accounts to Receive Digital Assets

Digital Asset Committees should work with the organization staff to determine which accounts to set up to receive digital assets. Options to consider:

Other options are available and all options should be considered by the digital asset committee and confirmed by the organization staff or leadership. Digital Asset Ministries will assist in the option selection, but final decisions should be made by the committee who will then consult the organization leadership.

* Cold Wallets are recommended to use for “Receiving Addresses”. Instructions for use of Cold Wallets are set forth in another section of this website.

Digital Asset Distributions

Once digital assets are received as donations, the committee should decide where to place these assets. Options include the following:

If digital assets are received in one of the organization cold wallets that is stored in the organization office, and the decision has been made to convert the asset to USD or another digital asset, the asset in self-custody cold wallet must be “Sent” from the wallet to an online exchange for conversion.

Hold for Income Generation

For our purposes, there are 3 ways to generate income with digital assets. This is possible on Proof of Stake (POS) blockchains whereby “Staking” is the basis for network security. These options are summarized below:

Although it is easier to Stake on a crypto Exchange like Binance, Kraken, or Coinbase (for example), there is a possibility that one exchange can achieve a majority of voting rights and create an unbalance on the blockchain, we prefer decentralized staking options.

* DeFi stands for “Decentralized Finance” which will be covered in a different section of this website.