25 Nov '14, 1pm

Could Digital Currency Make Our Money More Secure?

Could Digital Currency Make Our Money More Secure?

The second hurdle is that the regulatory framework hasn’t gotten worked out. A lot of Bitcoin businesses are trying to get going, but they have trouble getting banks accounts, because banks are afraid they’ll get into trouble for banking Bitcoin businesses. A lot of Bitcoin businesses are cash only or pay their employees in bitcoin because they literally cannot get a checking account to write paychecks. Why is that? Because the rules are not entirely clear for how a Bitcoin-based business can comply with the law, or for how a bank can comply with the law and regulation for banking a Bitcoin business. Because of that uncertainty, it’s too risky for a bank to open an account for a Bitcoin business. You only make a small amount of profit per customer, and if that one customer is going to cost days of legal expenses plus the risk of a major regulatory intervention, it’s just n...

Full article: http://www.forbes.com/sites/laurashin/2014/11/25/could-di...

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