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Federal Reserve Chairwoman states the Central Banking system has no authority over Bitcoin

Feb 28 2014, 11:37am CST | by , in News | Technology News

Federal Reserve Chairwoman states the Central Banking system has no authority over Bitcoin
Photo Credits: bitcoin
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With countries around the world restricting use of the virtual currency, a thought has been put forward to ban its use in the US as well

The bitcoin is pretty much secure at this time and is far from any interference from the Federal Reserve. The new Chairwoman Janet Yellen of the Fed has clearly declared that bitcoin is a virtual currency and there seems to be no reason why the Central banking systems should have any authority over it.

This is what the Chairwoman had to say while presenting a testimony in front of the Senate Banking Committee:

"This is a payment innovation that is taking place entirely outside the banking industry. It certainly would be appropriate, I think, for Congress to ask questions about what the right legal structure would be for virtual currencies that involve nontraditional players."

It is true that these types of currencies cannot be regulated properly without having any supervisor take care of them and many countries have already started restricting the use of bitcoin through legal ways. The time is not far when such legal restrictions would be put on the virtual currency in the United States where a Democrat from West Virginia has put forward a serious though regarding the ban against the use of this currency. But considering how widely recognized the virtual currency is, it doesn’t seem likely that there will be an law banning its use right away. A better option has been put forward by Japan's Ministry of Finance stating that all countries can work together to devise a set of international regulations. In the presence of such regulations, people will not be able to take advantage of the loopholes which can lead to abuse.

 

source: wsj

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