In essence, Bitcoin was described as a digital currency that could be converted into cash. That question keeps popping up, especially as more news reports on Bitcoin appear in the media. WLRN’s “The Sunshine Economy” radio program recently aired an hour-long program on Bitcoin: what it is, how it’s supposed to work, and its effects on the larger economic community. In essence, Bitcoin was described as a digital currency that could be converted into cash. Currently, the Bitcoin economy has been created and exchanged independent of banks or governments – but there are many unknowns as to whether this will continue to be the case. Program host Tom Hudson interviewed local economic and banking experts about whether Bitcoin passes muster when it comes to value, viability and security. He suggested a possible advantage of Bitcoin being that it allows merchants to avoid fees associated with accepting credit card purchases. Among those interviewed was Gabriel Caballero, an attorney in Gunster’s banking and financial services law practice and former Associate General Counsel of Banco Santander International, a subsidiary of one of the world’s largest banks by market capitalization. Caballero was asked where banks stood on the issue of Bitcoin. On the program, he noted that there was regulatory uncertainty around the use of bitcoins, and that the first regulator to come out with formal guidance on this new financial product is the Financial Crimes Enforcement Network, otherwise known as FinCEN. The agency recently stated it considers Bitcoin a virtual currency and those who transmit it are considered “money transmitters,” which triggers a host of licensing and registration requirements at the federal level – and possibly at the state level, too. Listen to the WLRN audio webcast, including an interview with Gunster banking attorney Gabriel Caballero (at the 38-minute mark): Bitcoin in South Florida: Real business taking virtual money (WLRN, The Sunshine Economy, 1/28/14) Read a releated article written by Caballero: Bitcoins changing way we view financial services (Daily Business Review, 1/30/14 – subscription req’d) Image courtesy of ditigalart/FreeDigitalPhotos.net.

Close


Find a Professional

by Name


by Practice/Office