Thursday, November 21, 2013

Regulators See Value in Bitcoin Digital Currency

Financial regulators, law enforcement, and even the chairman of the Federal Reserve show support for digital currencies at a Senate hearing.

Bitcoin is a crypto-currency that is designed to be use on the Internet. It has gained support at a U.S. Senate hearing on Monday including law enforcement, the chairman of the Federal Reserve, and financial regulators.

The value of the currency skyrocketed after the senate hearing.

Interested observers might have expected yesterday’s hearing on the potential risks, threats, and promises of virtual currencies to presage a regulatory crackdown: the hearing came just a month after the bust of Silk Road, a notorious online market that accepted bitcoins for guns, drugs, and other illicit goods. Though the hearing was nominally about digital currencies in general, the focus was really on Bitcoin, a currency that uses cryptographic techniques to allow money transfers directly between peers, rather than through a central authority like a bank or PayPal.

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