Treasurer’s Message

Shawn Welch

PORAC Treasurer

Happy Independence Day. July 4, 1776, commemorated the Declaration of Independence of the United States. The Continental Congress declared that the 13 American colonies were no longer subject (and subordinate) to the monarch of Britain, and were now united, free and independent states: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

That passage has allowed our country, the United States of America, to grow into the greatest country humanity has ever known. It has been a rough go and we have made mistakes along the way, but in the end, I believe we are better off today because of the people who believed in the ideas expressed in the Declaration of Independence. We are all individuals who can control our own path in life. It might be a little more difficult for some than others, but we as Americans can choose what we want in life and work hard to achieve our goals.

So, this Fourth of July, when you are sitting around with family and friends, remember that it was not without bloodshed and heartache that we gained our freedom. God bless America.

 

Update on Bitcoin

After my June article, PORAC received a tweet regarding a CNN article about El Salvador adopting Bitcoin as legal tender. Salvadoran President Nayib Bukele proposed that Bitcoin could be used as legal tender in the country alongside the U.S. dollar. However, giving a currency legal tender status typically means that it can be used by borrowers to repay debts. It does not mean a person or business must accept the currency as payment.1

Obviously, the person who sent the tweet was not happy about my article and was trying to justify the action of using association funds to invest members’ money in an extremely risky investment.

On June 16, Reuters published an article headlined “World Bank rejects El Salvador request for help on bitcoin implementation.”2  The World Bank spokesperson stated, “We are committed to helping
El Salvador in numerous ways including for currency transparency and regulatory processes.” The problem with Bitcoin, according to the International Monetary Fund (IMF), is that it causes several macroeconomic, financial and legal issues that require a careful analysis.

All this being said, the point of last month’s article was to inform PORAC members that they need to ensure that association board members are not investing the association’s money inappropriately. The volatility of Bitcoin and other cryptocurrencies makes it too big of a risk as an investment. In the last month, values have been as high as 40,000+ and as low as 29,000+. So, educate yourself and find out if your association leadership is being fiscally responsible with the members’ funds.