Known to fuel transactions on Internet black markets, Bitcoin has the potential to open the digital
economy to poor societies around the world. Not only has its value climbed to
all-time highs in recent weeks, but also Bitcoin has caught the U.S. governments
attention. Weve seen the steady growth and popularity of this digital currency
since it debuted in 2009. Recent events, such as the FBIs closure of Silk Road, have
brought Bitcoin into the spotlight.
The closure of Silk Road is said to be a major contributor in
the surge of its value. Its boosted hopes that Bitcoin is quickly becoming a
credible currency alternative. Another reason could be increased awareness
Globally and individuals investing in them. The U.S. Senate Committee on
Homeland Security and Governmental Affairs are trying to figure out how to
handle Bitcoin while privacy advocates want Bitcoin to be free from
governmental oversight. Advocates are saying that Bitcoin can provide a global
transaction network that cannot be corrupted or abused by criminals.
Recently, the New York State Department of Financial
Services decided to consider whether or not they should issue a certification
called BitLicense to help manage the spread of online currencies like
Bitcoin. This license would require consumer
protection services and anti-money laundering requirements, designed to
make the currency less useful to fraudsters. Of course, many worry that the
introduction of regulations could make the currency less appealing, causing its
value to decline.
As more consumers begin to understand Bitcoin and see its
potential in the future, theyll want to be a part of it. Once a decision has
been made, sophisticated fraud prevention
tools can help regulate transactions and assist in monitoring fraudulent
activity. It would be easier to fight crime with appropriate anti-money
laundering and Know-Your-Customer controls.
[Contributed by EVS Marketing]