US Senate To Examine Online Currency Policies

Published Wednesday, November 06, 2013 -
US Senate To Examine Online Currency Policies

Virtual money seems like an inevitable stage in the world of finance with its connection to the internet. Cash has become a thing of the past for many people who use the plastic and the chip for almost everything including of course online gambling.

The requirement for renting a car is not that you have a bank full of cash it depends on your possessing a credit card. The card is still connected to available cash at the ATM machine with unbelievably high interest rates in some jurisdictions.

It is no wonder therefore that people are looking at the virtual currencies out there like Bitcoin among others with less scepticism and more trust every day. The Bitcoin just hit over $260.00 US today and looks like it will continue to gather momentum. Momentum that is in some ways being fueled by the interest generated by the media.

Recent news that two Senate committees will hold hearings on the policy issues raised by virtual currencies has spurred the currency on again. Although no dates have been set for the committee hearings but it has been suggested that the two Senate hearings will look into how regulators are responding to this sea change in finance. Regulators of the financial sector will watch over investment in the new currencies and how they may evade tax collection or facilitate trade in illegal endeavours.

The Senate Committee on Homeland Security and Government Affairs and a sub-committee of the Senate Banking Committee, will host the hearings that should be attended by both private sector and public sector representatives.

Sens. Tom Carper (D., Del.) and Tom Coburn (R., Okla.),who are the top lawmakers on the Homeland Security panel said, “As with all emerging technologies, the federal government must make sure that potential threats and risks are dealt with swiftly; however, we must also ensure that rash or uninformed actions don’t stifle a potentially valuable technology,”

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