The Federal Reserve Bank of Richmond has published an interesting paper surround bitcoin and digital currencies (which they refer to as ‘private currencies’) as a whole.
“At first glance, bitcoins lack the inherent value of government authority to get them off the ground as an accepted currency,” the paper states. “But in surprising ways, they resemble the gold and silver coins of ancient times.”
The report goes on to state most of what we’ve been reporting, quite frankly. Uncertain regulation reminiscent of the early days of the Internet, in which many people had no idea how laws applied, and the potential for abuse of bitcoin for illegal operations (which, of course, can be done with traditional fiat currency, too).
But overall, this report seems to have a positive vibe on bitcoin — which is nice to see coming from a Federal Reserve bank. Just recently, the president of the Richmond Fed appeared on national television and stated they’ve no interest in stopping bitcoin in any form.
Many think that it’s this type of attitude that will allow bitcoin to flourish amongst the masses, but also to allow start-ups to get involved, see its potential, and innovate for this community.
If you have a few extra minutes, we’d encourage you to read the paper at the Fed’s website.