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Thoughts on a Country Adopting a Bitcoin-Like Currency

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A few months ago, a Latin American advisory group asked me to comment on the Digital Sucre and the potential impact of a country adopting a digital or crypto currency as legal tender.  It never occurred to me that I should post the surface-scratching responses I came up with, until American Banker‘s Bailey Reutzel asked the question (here).  With the upcoming release of AuroraCoin in Iceland, and the adoption of a bitcoin clone by the Oglala Lakota Native American nation, this seems to be a good time to poke the discussion.  So here go my two cents in the hope that a few extra thoughts will be triggered.

In concept, is bitcoin more a currency or a payments system?

Bitcoin is both.  In addition, and most importantly and fundamentally, it’s also a protocol on top of which additionally functionality can be built.  The fact that Bitcoin (with a capital B) is multiple things at once is what creates most of the confusion about it.  Bitcoin is a sophisticated globally distributed asset register that, at this moment in time, is mostly being used to register value in USD or other fiat currencies.  Hence the fact that it’s Continue reading →

2014-03-01 Crypto-Timeline

Here is a log with relevant legal, regulatory, law enforcement and business risk milestones in crypto-currencies’ race to maturity with links to trusted sources.

Phew.  Short month, but no shortage of shocking news in February!

The  Key February 2014 Crypto-Events were:

• 2/1/2014 – Bank stops working with bitcoin exchange CampBX due to regulatory concerns
• 2/2/2014 – Law Library of Congress releases report on Bitcoin’s legal status worldwide
• 2/4/2014 – Bitcoin scam costs Wisconsin man $150,000
• 2/5/2014 – Kazakhstan Central Bank could ban Bitcoin to protect bankers
• 2/6/2014 – Apple removes the last remaining Bitcoin app from the Apple Store
• 2/6/2014 – Indonesia Central Bank takes new, more neutral stance on Bitcoin
• 2/7/2014 – Mt. Gox halts all bitcoin withdrawals, price drop follows
• 2/7/2014 – Florida targets high-dollar bitcoin exchangers without money transmitter licenses in the State Continue reading →