Results 1 to 2 of 2

Thread: Bloomberg: Virtual Bitcoin Currency Enters Real World

  1. #1

    Bloomberg: Virtual Bitcoin Currency Enters Real World

    Welcome to the real world, Bitcoin. The U.S. government has officially legitimized the popular crypto-currency and other "virtual currencies" by attempting to regulate them.

    The U.S. Treasury’s Financial Crimes Enforcement Network published a list of guidelines Monday applying money-laundering and record-keeping rules to companies that issue or exchange these currencies. This won't affect people using Bitcoins to purchase goods or services.

    The guidelines reflect rising concerns about virtual currencies' use in illegal activities, and risks associated with hacking, account thefts and software glitches, as seen in a Federal Bureau of Investigation report last year.

    They also are a testament to Bitcoin's growing popularity. Bitcoins reached an all-time-high valuation of $74 yesterday. The surge in the exchange rate this week coincided with concerns that the Cyprus government would take euros from saving accounts to pay its bailout bill. Bitcoin is increasingly seen as an alternative to traditional currencies.
    Created by mysterious programmer Satoshi Nakamoto in 2009, Bitcoin removes the reliance on financial institutions from transactions. The currency, which offers users privacy and anonymity, is often celebrated as "democratic" money because exchanges can occur directly between individuals. The network is a decentralized system of tens of thousands of personal computers.

    The Bitcoin Foundation responded to the new guidelines in a statement Tuesday, saying the new rules could be infeasible "for many, if not most, members of the bitcoin community to comply with." The change could affect people who "mine," or create, new Bitcoins (and are rewarded with Bitcoins as payment) by making them register with the government if they transmit Bitcoins into another currency.

    Some companies anticipated the rules. BitInstant, a payment processor that exchanges dollars into Bitcoins at more than 700,000 locations, is already compliant, the Wall Street Journal reports. And there are plenty of legitimate uses for Bitcoins that could benefit from government oversight. People can use them to make purchases on the websites Reddit and WordPress, for example. One guy even listed his Canadian bungalow for sale in Bitcoins.

    For Bitcoin to attract new users and larger sums of money, identification and accountability are necessary. The next step may be to increase the ease of use and integration into existing banking structures. The Bitcoin-Central currency exchange partnership with French financial firm Aqoba in December offers a model for what that might look like. The partnership allows Bitcoin-Central to issue debit cards that can convert holder's Bitcoin balance to euros, and the euro balances of the accounts can be government insured.

    The buzz about Bitcoin in the euro area and the U.S.'s new guidelines are a sign:

    Governments can't ignore Bitcoin anymore.

    'We endorse the idea of voluntarism; self-responsibility: Family, friends, and churches to solve problems, rather than saying that some monolithic government is going to make you take care of yourself and be a better person. It's a preposterous notion: It never worked, it never will. The government can't make you a better person; it can't make you follow good habits.' - Ron Paul 1988

    Awareness is the Root of Liberation Revolution is Action upon Revelation

    'Resistance and Disobedience in Economic Activity is the Most Moral Human Action Possible' - SEK3

    Flectere si nequeo superos, Acheronta movebo.

    ...the familiar ritual of institutional self-absolution...
    ...for protecting them, by mock trial, from punishment...

  2. Remove this section of ads by registering.
  3. #2
    ...then they fight you...

    Bitcoin has too many avenues to win. Combined with the Tor browser and PGP encryption the best that Governments can do is slow it down. Bit torrent couldn't be destroyed and neither can Bitcoin.

    The fiat lords hate the internet.
    Last edited by muh_roads; 03-23-2013 at 10:56 PM.

Similar Threads

  1. Bitcoin 'Conspiracy Theory' Alleges Virtual Currency is NSA or CIA Project
    By tangent4ronpaul in forum Bitcoin / Cryptocurrencies
    Replies: 5
    Last Post: 08-25-2014, 12:32 PM
  2. eBay to allow Bitcoin sales in 'virtual currency' category
    By TomKat in forum Bitcoin / Cryptocurrencies
    Replies: 4
    Last Post: 01-22-2014, 07:44 PM
  3. Virtual-Currency Craze Spawns Bitcoin Wannabes
    By CaseyJones in forum Bitcoin / Cryptocurrencies
    Replies: 3
    Last Post: 11-21-2013, 10:43 AM
  4. Bloomberg: Virtual Bitcoin Currency Enters Real World
    By presence in forum Economy & Markets
    Replies: 1
    Last Post: 03-23-2013, 10:55 PM
  5. Replies: 3
    Last Post: 01-19-2010, 01:39 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts