The Payjoin Foundation, a U.S.-based organization focused on advancing Bitcoin privacy software protocols, has officially received 501(c)(3) status. This designation allows certain U.S. taxpayers to make tax-deductible charitable contributions to the foundation. Dan Gould, the Executive Director of the Payjoin Foundation, emphasized the importance of this achievement, stating, “Receiving 501(c)(3) status establishes a framework to sustain the Payjoin Dev Kit and future developments. It allows us to prioritize the development of infrastructure designed to endure, accountable to the public interest.”
As a nonprofit research and development organization, the Payjoin Foundation is dedicated to maintaining the Payjoin Dev Kit. Its mission is to develop and distribute open-source software and standards that enhance privacy, security, and usability in peer-to-peer digital transactions, primarily focusing on Bitcoin. The foundation engages in various activities, including research, publishing free software, and providing educational materials. It also supports the adoption of its technology by offering reference implementations, technical documentation, and integration guidance to developers and infrastructure operators.
Gould remarked on the implications of the new tax status, noting, “Now that the IRS has recognized Payjoin Foundation as a 501(c)(3), donations from U.S. taxpayers are generally tax-deductible. The exact treatment depends on the donor’s circumstances. Consult your tax advisor.” This sustainable funding avenue is expected to accelerate the foundation’s efforts, particularly in enhancing protocols like Async Payjoin. This technology is designed to protect Bitcoin users from both indiscriminate and targeted surveillance.
Bitcoin has faced long-standing criticism regarding its privacy features, particularly for users who may not be aware of its more advanced tools. The Payjoin Dev Kit aims to make it easier for wallets to enhance their users’ privacy by utilizing a high-quality open-source software library. Notably, the adoption of Payjoin does not necessitate any changes to the Bitcoin protocol itself, such as a consensus change or fork. Instead, wallet providers can integrate the Dev Kit into their existing software, seamlessly expanding their users’ capabilities while maintaining compatibility with standard on-chain address QR codes.
Users interested in enhancing Bitcoin privacy are encouraged to engage with their preferred wallet providers to advocate for the integration of the Payjoin Devkit. Additionally, they may consider making tax-deductible contributions to support the ongoing efforts of the Payjoin Foundation. Several wallets already provide varying levels of support for the Payjoin Dev Kit, highlighting a growing interest in stronger privacy solutions within the Bitcoin ecosystem.
