In a blog post some time ago, I believed that virtual currency may not be quit virtual any more. At that time, the subject matter in question was loyalty currency that could evolve into 'real money'. It seems, however, that virtual currencies going mainstream may not be limited to those of the 'rewards' kind. Today, news broke that Thailand may have declared it illegal to buy and sell Bitcoin or use it to make purchases.
In a conference with Bitccoin earlier, The Bank of Thailand officials decided that "due to lack of existing applicable laws, capital controls and the fact that Bitcoin straddles multiple financial facets," several of the exchange's related activities are illegal in Thailand. Bitcoin has had its fair share of controversy since the inception of this peer-to-peer currency. It attracted a lot of negative publicity when it came to light that the shady underground market place Silk Road hidden in Deep Web transacts $1.9 million a month in illegal drugs. The anonymity of users on Silk Road ensured that the virtual black market traded all manner of contraband, the most significant of which are illegal drugs.
Negative publicity and lack of regulatory infrastructure aside, it is ironic that the Bitcoin and other alternate currencies may be turn out to be more stable forms of monetary tokens for the consumer than the digits that flash across the screens on ATM terminals given the volatile financial markets of late.
It remains to see how financial systems can rein in the renegade systems. One must remember that money evolved to its present form in various cultures with their own accepted forms of tokens -- as long as the tokens are trusted and recognised as such. Who is to say that these alternative currencies won't make it to the mainstream in time to come?
In a conference with Bitccoin earlier, The Bank of Thailand officials decided that "due to lack of existing applicable laws, capital controls and the fact that Bitcoin straddles multiple financial facets," several of the exchange's related activities are illegal in Thailand. Bitcoin has had its fair share of controversy since the inception of this peer-to-peer currency. It attracted a lot of negative publicity when it came to light that the shady underground market place Silk Road hidden in Deep Web transacts $1.9 million a month in illegal drugs. The anonymity of users on Silk Road ensured that the virtual black market traded all manner of contraband, the most significant of which are illegal drugs.
Negative publicity and lack of regulatory infrastructure aside, it is ironic that the Bitcoin and other alternate currencies may be turn out to be more stable forms of monetary tokens for the consumer than the digits that flash across the screens on ATM terminals given the volatile financial markets of late.
It remains to see how financial systems can rein in the renegade systems. One must remember that money evolved to its present form in various cultures with their own accepted forms of tokens -- as long as the tokens are trusted and recognised as such. Who is to say that these alternative currencies won't make it to the mainstream in time to come?
