Some interesting dry reading on what the Fed thinks of bitcoin.

Nov 13, 2013

Some interesting  and dry reading on what the Fed thinks of bitcoin.  Some good info in the whitepaper linked here.  There is a meeting happening on the 18th and that could determine how we use the technology in the US.

[Warning PDF]

So far, the uses of bitcoin as a medium of
exchange appear limited, particularly
if one excludes illegal activities. It has
been used as a means to transfer funds
outside of traditional and regulated
channels and, presumably, as a specu-
lative investment opportunity. People
bet on bitcoin because it may develop
into a full-fledged currency. Some of
bitcoin’s features make it less convenient
than existing currencies and payment
systems, particularly for those who have
no strong desire to avoid them in the
first place. Nor does it truly embody
what Hayek and others in the “Austrian
School of Economics” proposed. Should
bitcoin become widely accepted, it is un-
likely that it will remain free of govern-
ment intervention, if only because the
governance of the bitcoin code and net-
work is opaque and vulnerable. That said,
it represents a remarkable conceptual and
technical achievement, which may well
be used by existing financial institutions
(which could*** issue their own bitcoins***)
or even by governments themselves.”

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