‘Bitcoin means loss of control for government agencies’ – expert

capitolhill17 Dec 2013 – Voice Of Russia – The craze around Bitcoin is beating record highs. The protocol raises much debate polarizing the views on the future of the digital currency from complete support to resounding opposition. The Voice of Russia discussed it with Andreas Lehrbaum, Chairman of the non-profit organization “Bitcoin Austria”.

What are your predictions for bitcoin when will it catch on in a global sense?

Well, I’m sure, it has quite a big potential. I mean, it’s a totally new technology, and it enables services that were previously impossible to do. So, for the first time in history, you can act globally without any fears, without any limitations in the amounts, and without needing any third party to enable the services. And that means that the future potential of Bitcoin is pretty good.

You mentioned 3 pluses: without paying for services without a third party and so forth. Are those the same qualities that cause certain countries to be very afraid of what Bitcoin could mean. They cannot control it.

Yes, it is. Bitcoin, of course, means loss of control for government agencies or other monitoring authorities, because for the first time they cannot really stop anybody paying to different countries or enforcing capital controls, so that’s partly the reason why they are expressing concern about this new phenomenon, and also why they might try to crack on some of big changes and put pressure on their merchants to follow the rules of the traditional monetary system.

The European Banking Authority has warned markets about the currency’s possible threat. The Chinese government simply banned trade in Bitcoins. Is this monetary novelty really that much of a danger? What are bitcoin’s large scale implications for existing currencies?….. Read more


Follow Twitter

Exchange Rate