Notable because Warren Mosler is a well known economist. It looks like finally the point is getting across that Bitcoin can be useful no matter what the exchange rate.
Bitcoins join global bank network
Warren Mosler
2012-12-10
http://moslereconomics.com/2012/12/10/bitcoins-join-global-bank-network/(entire article text)
Been looking at Bitcoins for a while and seems it’s not a currency but a payments system.
For example, a acquaintance of mine who wanted to buy an item arranged with the seller to do it via Bitcoins to ‘save’ on vat taxes.
Say the Bitcoin happened to be valued at $12, the buyer wanted to pay $120 dollars.(Note that the value per se was of no consequence for this transaction.)
What the buyer of the item did was buy 10 Bitcoins for the $120, while simultaneously the seller sold 10 bit coins for $120.
The buyer then then bought the item by transferring his 10 Bitcoins to the seller via the exchange, who ‘delivered’ them to the exchange for his prearranged $120.
Bitcoins facilitate untaxed and anonymous transactions. The value of a Bitcoin is of no particular consequence to the buyer and seller in the case of transactions like this, and will fluctuate as a function of the policies of the exchange management.
And seems the right to ‘operate as a bank’ now officially sanctions this type of activity.
Virtual cash exchange becomes bank
** Bitcoins join global bank network **
A currency exchange that specialises in the virtual currency known as bitcoins has won the right to operate as a bank.
About Warren Mosler (snipped from Wikipedia)
Warren Mosler (born September 18, 1949) is an American economist, president and founder of Mosler Automotive, and co-founder of the Center for Full Employment And Price Stability at the University of Missouri-Kansas City. He briefly ran for President of the United States as a member of the Democratic Party in the 2012 election before dropping out to run for U.S. Senate.
