Federal Reserve studying effect of Paypal and Bitcoin on banking

[Severian]

http://www.rawstory.com/rs/2013/06/03/federal-reserve-studying-effect-of-paypal-and-bitcoin-on-banking/

"Some officials fear the virtual currency can be used by criminals or terrorists, or could be vulnerable to hackers."

Criminals in government and banking prefer controlling people via their own funny money, iow.

[BitAddict]

Criminals/terrorist can use cash... Is funny how they lie for their own bussiness.

[hayek]

Interesting

Fiat can be used for all of those things as well. We should start a government agency to regulate your government agency to regulate the government agency that regulates agencies.

That'd fix things.

[Severian]

We should start a government agency to regulate your government agency to regulate the government agency that regulates agencies.

Just because you're named 'hayek':

"If the natural tendencies of mankind are so bad that it is not safe to permit people to be free, how is it that the tendencies of these legislators are always good? Do not the legislators and their appointed agents also belong to the human race? Or do they believe that they themselves are made of a finer clay than the rest of mankind?"

-Bastiat

[TheFootMan]

Some officials fear the virtual currency can be used by criminals or terrorists, or could be vulnerable to hackers.

I fear know that the existing system are already used for these purposes. My suggestion is that we shut down the entire system and have all bankers at wall streets roll up their sleeves and starts planting carrots and use these for barter, and oh - we should shut down all international trade at the same time. We didn't have this trade in the old age, and we were just fine. Carrots it is, burn the fiat!

[hayek]

We should start a government agency to regulate your government agency to regulate the government agency that regulates agencies.

Just because you're named 'hayek':

"If the natural tendencies of mankind are so bad that it is not safe to permit people to be free, how is it that the tendencies of these legislators are always good? Do not the legislators and their appointed agents also belong to the human race? Or do they believe that they themselves are made of a finer clay than the rest of mankind?"

-Bastiat

Should have added sarcasm tags to my last post.

[CasinoBit]

The real criminals and terrorists are the officials

[alyssa85]

Well as long as there are Silicon Valley types trying to create real ecommerce solutions using Bitcoin and as long as Forbes reporters are doing articles on how they bought groceries using Bitcon, govt is going to find it really hard to claim, like they did with Liberty Reserve, that "everyone" who used it was engaged in criminal activity.

The community really needs to get behind all the ecommerce ventures and charity drives, and away from speculation - and Bitcoin will be safe. The more the real economy depends on Bitcoin funds being spent in their stores, the harder it will be for govt to take it down.

The loss of Liberty Reserve "only" hurt people in countries who were using it because they couldn't use Paypal. Whereas bitcoin going down would hurt some prominent Americans. The more Bitcoin participates in the real economy, the more untouchable it gets...

[Kouye]

This is nothing new.
They're scared, obviously.

Some bankers have expressed worries that newer players in the online marketplace could have negative implications for the financial system.

Hahaha!

Once we all begin using BTC instead of just trying to convert them to $, they won't be scared anymore.
They'll just have to admit that their time is over.

[TheFootMan]

The real criminals and terrorists are the officials

Quoted for truth.

[BitTrade]

They are studying the effects of the 2 biggest things they don't fully control on the one thing they do fully control, to see if it's necessary to call their control agents (politicians) to get more control.  

[franky1]

just use the governments own statistics against them.

in the last 4 years, millions upon millions of dollars have been seized in relation to drug offences.. in the same time............. 11btc have been seized