Bitcoin has taken a step towards “officialness” as of 7 December in the eurozone as its network has joined the PayPal and Worldpay by becoming a registered payment services provider (PSP) under European law. The deal was made in France with the investment firm Aqoba and the Crédit Mutuel bank, and, because Bitcoin-Central now has an international bank ID number, the network can send and receive transfers to and from other banks and issue debit card for users. Bitcoin will become an official services provider, but will this eventually undermine the pseudonymous nature? (Read more…)
“At Paymium we spent lots of time and energy talking about Bitcoin to our regulating bodies, the Banque de France, the ACP (French equivalent of the American SEC), TRACFIN (AML French supervising body) etc. We engaged all these resources with one goal in mind: get these people to know Bitcoin, advocate our beloved crypto-currency and listen to them, help them think until they finally reach the same conclusion as we did: there’s nothing wrong with people being free. There’s nothing wrong with people freely exchanging value, we don’t hurt anybody, we’re not forcing anyone to use Bitcoin, we simply want to see our dream and the future of money become a reality.”
Bitcoin is therefore more accessible now than ever before, and it already was the easiest medium by which to exchange. It is a step in the eurozone to regulate the network, the argument being that since it is subject to the same protection of other mediums, it must then too be regulated the same.
Paymium’s CTO later noted that there would be no limitations regarding citizenship, but this is, of course, at first, as he did say that there would be a “learning curve.” Essentially, over time, the system have to adopt the dominant regulatory architecture. The development has been a vague one, and no questions regarding FACTA requirements have been answered. FACTA’s requirements mean heavy lifting for financial institutions worldwide on behalf of the US government.
And so, what this means, in the long run, as I expressed above, there is a likelihood that Bitcoin-Central will not have to report to a central authority. It could be that we will see a wave of PSPification of Bitcoin the world over, which will only work insofar as to bring the system in the capstone digital money. Transactions to Europe will no long be considered private.
[VIA Silver Vigilante]