Last week the Feds came out with new regulations regarding ‘digital currencies’. The regulations say that digital currencies like bitcoin are to be treated essentially as foreign currencies. Companies that exchange digital bitcoins for real money will have to comply with the same regulations as traditional currency exchangers — namely, they must verify the identity of anyone exchanging money for bitcoins and report large transactions to the government. However, using bitcoins to purchase goods, however, is specifically exempted.
BitPay is the equivalent of PayPal allowing buyer and seller to exchange bitcoins for items, and in some cases those items can be illegal drugs, since just like cash, the transaction is anonymous. Seems the interest in bitcoins has increased because of the banking/debt problems in Cypress. Some people are using gold as a safe haven and some are using bitcoins as a safe haven. There is even a site where you can exchange bitcoins for government issued note.
It’s a brave new world!