Federal Reserve economist says bitcoin is a remarkable technical achievement

(CoinDesk) A member of the United States Federal Reserve banking system has written an analysis of bitcoin, stating that there are many positive aspects to it.

François R. Velde, senior economist of the Federal Reserve in Chicago, writes in his paper “Bitcoin: A primer” that bitcoin is a “remarkable conceptual and technical achievement, which may well be used by existing financial institutions.”

“The bitcoin protocol provides an elegant solution to the problem of creating a digital currency—i.e., how to regulate its issue, defeat counterfeiting and double-spending, and ensure that it can be conveyed safely—without relying on a single authority,” Velde writes.

The news of these remarks coming from the US central banking authority come on the heels of bitcoin’s price hitting a record high since it was first created back in 2009.

Andrew Beal, corporate attorney at Los Angeles-based firm Crowley Strategy, works primarily with startup technology companies. He thinks that this is a sign that the banking industry is taking bitcoin seriously, which is good for businesses that want to accept of otherwise build a company around BTC.