Virtual Currency Surge May Serve Online Gambling Industry Needs

Published Tuesday, June 12, 2012 -

The internet gambling world has been growing in leaps and bounds since its invention not so long ago but has been plagued by one big issue. The transferring of funds by banks and payment service firms has been made the method that governments control the activity. In the USA and other nations which have tried to prohibit offshore firms from offering online gambling for real money its the transferring of money associated with betting that is targeted.

Enter virtual currency in all its various forms a substance that seems useful but has a visceral drawback, its only available via the internet. The newest trend in account management has been getting a lot of attention of late in Europe and now in Canada where the the Royal Canadian Mint’s Research & Development department has created the MintChip. This is a completely digital method of payment. The technology stores value in a microchip, from which encrypted “value messages” that can be transmitted to other microchips. There isn’t a centralized database, making the digital funds as anonymous as a traditional paper banknote.

A recent article published in Canada’s National Post newspaper said the virtual currency known as Bitcoin has been surging as millions of Europeans look to save their euros from the possible devalued demise. Moving their money into safe havens such as U.S. Treasuries, Government of Canada bonds and the virtual currency Bitcoin is seriously affecting the current situation in the financially troubled Eurozone. Anxious to protect their savings people in Spain, Italy, Greece, and even the Netherlands are converting to Bitcoins.

Charlie Shrem, CEO of BitInstant a New York firm that enables the transfer of funds between Bitcoin and other major currencies such as Canadian, US, Euros said, “We’re getting requests from people literally saying, can we mail you euros? We can’t do that legally, but they keep asking.” Created back in 2009 as an Internet only currency regulated by a network algorithm Bitcoin is catching on because it solves a variety of issues because it operates outside the payment systems controlled by the traditional banks. Bitcoin could be the next currency for online gambling and free the industry from political intervention.

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