Directly on the heels of a Federal assault on the alternative currency Liberty Reserve, Federal regulators are discussing more oversight of Bitcoin and other virtual currencies.
“It’s gotten to a level where I think for us not to take notice and to try and make some sort of determination about what to do would be irresponsible,” said Bart Chilton, a commissioner on the Commodities Futures Trading Commission (CFTC) told The Hill.
Writing for Forbes, contributor Tim Worstall explains how Federal officials can destroy any alternative currency with bureaucracy:
Almost anyone at all in that international financial system has a connection into the US one. And if the US bureaucracy that oversees that US financial system decides that it doesn’t like people who deal with Bitcoin, or even doesn’t like people who deal with people who deal with Bitcoin, then Bitcoin just won’t have access to the international financial system. It’s not a matter of pure legality either. Bitcoin itself certainly isn’t illegal, paying for something with it isn’t, changing $ into $B isn’t and so on. But there are enough regulations about who may do what with whom in the financial system that any determined bureaucracy can freeze someone out of it.