Members of Congress want to make Bitcoin equivalent legal tender to the Dollar by Ken Schortgen, Jr.Governments around the globe use monetary policy, the manipulation of the supply and cost of money, to regulate their economies.As the debate rages on whether bitcoin is a legitimate currency or. will soon come out of the shadows and claim its rightful place as a legal tender.Vietnam and Indonesia have declared that virtual currencies are not legal as payments, while they are banned in Nigeria and Columbia.Governmental intervention of virtual currencies is extremely limited.A government can use this control to cool or heat its economy, erode the true value of its debts through inflation, and much more.
Bitcoin Legal Tender In Japan, But Not A Currency? (TheThis means it is a threat to governments, since they benefit greatly from controlling the supply and cost of their currencies (through monetary policy).Bitcoin will soon be legally recognized as a method of payment in Japan.Indian government is yet to consider Bitcoin as a legal tender.The benefits of effective monetary policy vastly outweigh the benefits of Bitcoin, or any virtual currency, from the point of view of government.Bitcoin has cash value and, if used for illegal purposes, can get you tossed in jail, a Manhattan federal judge ruled Wednesday, dismissing a bid by the.
REALIST NEWS - India May Issue Its Own Bitcoin-like Cryptocurrency As Legal Tender.The Japanese government is giving virtual currencies a trial period.
Using the definition of legal tender as: A medium of payment recognized by a legal system that may be offered in payment of a debt and that.England, China, Russia, Estonia, and Canada are among some of the national currency innovators.
India May Issue Its Own Bitcoin Like Cryptocurrency As
Malaysian central bank warns against Bitcoin | TechnologyNot Legal Tender. a Bitcoin has no physical form, is not legal tender,. and Analysis of Legal Issues Congressional Research Service 2.Bitcoin has no inflation model, yet it is not recognized as a legal tender by most governments either.
To allow Bitcoin, or any virtual currency, to become a larger percentage of total transactions would undermine the efficacy of their monetary policy.
REALIST NEWS - India May Issue Its Own Bitcoin-likeBitcoin is Now Legal Tender in California. It just (arguably) made Bitcoin legal tender,.
Embracing cryptocurrency, Japan has a new law that will make bitcoins usable as legal tender.Australian official suggests making Bitcoin legal tender in Australia.
Bitcoin Legal Tender In Japan, But Not A Currency? (The Cryptoverse #243)
Official Canadian source saying bitcoin is not legal tender?
Germany Recogonizes Bitcoin as Legal Tender - Bitcoin ReportConclusion Bitcoin, and virtual currencies in general, represent impressive technology but they also represent a significant loss of power to governments.As the debate rages on whether bitcoin is a legitimate currency or. soon come out of the shadows and claim its rightful place as a legal tender.As we will see, monetary policy is too beneficial for governments to give up.
Canadian authorities say Bitcoin is 'not legal tender'
Bitcoin Could Become Legal Tender in Australia AccordingIf governments realize the threat to monetary policy that virtual currencies pose and ban them, the price of Bitcoin and its virtual counterparts will drop to around their costs of production.Currently, numerous countries are looking into creating their own digital currencies.When firms conduct business with an extremely volatile currency, it becomes difficult to evaluate them.Bitcoin is an electronic money that is transferred electronically among users and can be exchanged for traditional currencies.
Many governments around the globe have already recognized the threat to their sovereignty that virtual currencies pose.
Bitcoin price spikes as Japan recognizes it as a legalBut eventually governments will recognize the threat to their sovereignty that virtual currencies pose, and take defensive action.
India Considers Issuing Its Own Bitcoin-LikeAfter several hurdles, Bitcoin and digital currencies are starting to gain legal recognition, the most recent being in the European Union and Japan.Earlier this month, Japan began accepting bitcoin as legal currency with major retailers backing the new law.If bitcoin is legal to use is there any risk of the government.National authorities will want to run their own monetary policy, and so the most that could happen is that national currencies and digital currencies coexist.Based on the recent price increases across the virtual currency board, the market has not realized or priced this in.If governments could not have increased the supply of money and lowered the cost of money during the last crisis, it would have been much worse.
Why else would Bolivia, Ecuador, Bangladesh, and Kyrgystan have made virtual currencies illegal.
India's RBI May Make Cryptocurrencies As Legal Tender ButOnce the Japanese government realizes this, controls and limitations on virtual currencies will abound.I wrote this article myself, and it expresses my own opinions.If an economy is overheating, the supply of money can be reduced and the cost of money (interest rate) can be increased, effectively cooling the economy and avoiding serious inflation, over-leveraging, and asset valuation bubbles.
India May Issue Its Own Bitcoin-like Cryptocurrency As
If a virtual currency is to become widely used in nations, it will be one that governments can control, which would defeat the purpose of the virtual currency in the first place, from the point of view of their citizens.Central Bank of Malaysia does not recognize Bitcoin as. not recognize Bitcoin as legal tender. Bitcoin is not recognized as legal tender in Malaysia.India May Issue Its Own Bitcoin-like Cryptocurrency As Legal Tender.I believe most governments will defend this power and not allow Bitcoin, or any virtual currency, to become prevalent in their economies.