Challenges of Deploying a Virtual Currency like Bitcoin
American non-profit global policy think tank RAND Corporation has published an extensive research paper entitled "National Security Implications of Virtual Currency," to examine the feasibility for non-state actors to increase their political power by deploying a virtual currency like bitcoin. The research addressed three main points: Why would a non-state actor (an organization with significant political influence) deploy a virtual currency? What challenges will it have to overcome? How might a government technologically disrupt a VC deployment? The purposes of deployment and development....
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Reserve Bank of Australia (RBA) Governor Glenn Stevens says that the advent of virtual currencies just might pose challenges for regulators around the world, given they operate "outside the perimeter" of central bank control. "Devoting a lot of resources to ever greater refinements to the details of existing regulatory structures will not help us," he said with reference to assessing whether or not virtual currency could threaten the stability of the current financial system. Stevens made his comments at the Symposium on Asian Banking and Finance in San Francisco, according to The Daily....
A US government-funded think tank has released a report that explores the implications of digital currencies issued by "non-state actors" like terrorist groups, drug cartels and insurgencies. The report by the RAND Corporation, entitled "National Security Implications of Virtual Currency", was published earlier this week. The more than 100-page report focuses primarily on hypothetical scenarios in which entities in conflict zones could seek to use a digital currency in a bid to create a domestic transaction network outside of the existing financial system. On the subject of the benefits of....
The RAND Corporation, an influential global policy think tank with strong defense and homeland security ties, has released a report titled “National Security Implications of Virtual Currency .” The report, freely available online , examines the feasibility for non-state actors, including terrorist and insurgent groups, to increase their political and/or economic power by deploying a virtual currency (VC) for use in regular economic transactions. The report was sponsored by the U.S. government through the Office of the Secretary of Defense, and the research work was conducted within the....
A roundtable discussion at the World Bank on Friday brought together a small group of officials for a closed-to-the-public,"frank discussion" about virtual currencies. "Virtual Currencies: The Legal and Regulatory Challenges," was organized by the Global Forum on Law, Justice and Development and was held at the World Bank's headquarters in Washington, DC. "A stocktaking roundtable will discuss legal and regulatory challenges associated to this new phenomenon. Virtual currencies are among the myriads of options for receiving payments and paying online. For example, Bit-Coin (sic) - one of....
The European Central Bank (ECB) has published a report on virtual currencies that recognizes their dramatic growth in recent years and analyzes some of their dynamics and challenges. Titled "Virtual currency schemes - a further analysis," the 37-page report points out that virtual currencies have risks. However, it notes that currently, bitcoin is used for around 69,000 transactions per day worldwide, compared with a total of 274 million non-cash retail payment transactions per day for the European Union alone. The ECB's 2012 report on virtual currency examined the extent to which virtual....