Institute
of Economic Affairs says governments should allow competition on a
level playing field between all alternative forms of money.
2 Jul
1
Winklevii Bitcoin ETF under the ‘COIN’ symbol
A recent filing with the SEC by none other than the Winklevii themselves, reveals some new developments in regards to the twins’ highly-anticipated and upcoming bitcoin exchange traded fund (ETF).
The Winklevoss twins recently filed an amended Form S-1 with the Secutiries and Exchange Commission. While the form acted as nothing more than an update to keep the SEC informed, the filing has revealed what many have been wondering since they first heard of the ETF — the ticker symbol.
The update acts as the fourth filing in total since the ETF’s initial proposal; the process as the twins have explained, is a daunting one that requires a grueling, yet meticulous process. The fund; however, has come a long way since its beginning, which was originally filed for on 1 July 2013.
As some have speculated, evident of the twins’ latest filing, the first of its kind bitcoin ETF will trade on the NASDAQ under the ‘COIN’ symbol.
According to the Wall Street Journal the filing has divulged some of the concerns shared by the twins when it comes to the risks associated with the up and coming ETF. Among those include government regulation, Bolivia’s recent central bank ban and Switzerland’s latest legislative ruling.
On top of the more regulatory risk factors, the filing has revealed what the twins feel to be the technological factors that could threaten the digital currency’s well-being. This including the much-raved about possibility of a 51% attack in addition to what others have voiced as a concern of what would happen if the core developers suddenly stopped sustaining the bitcoin protocol unless they are compensated.
The question everyone wants to know; however, remains a mystery. Which is when the ETF will launch. While the twins are diligently working to make sure the fund is indeed launched as soon as possible, it will for now remain a mystery as to when the ETF will be up and running, this is in part due to the strict laws surrounding these type of filings.
In a conversation with CoinDesk, Cameron Winklevoss reiterated that he cannot speak on a launch date but he did provide a brief statement in respect to the now-revealed ticker symbol:
“Identifying the ticker symbol and the exchange are two major events that further demonstrate that we are moving forward as expected.”
The overall vision of the twin’s bitcoin ETF is to make it simple for institutional investors to buy and sell bitcoin without having to endure the risk of owning bitcoin themselves. The ETF aims to make the digital currency easily accessible to investors of any size, while providing a liquid platform that makes it possible for investors to move in an out of their bitcoin positions with ease.
The Winklevoss twins currently own a reported 1% of all bitcoins in circulation, the twins are well known for their ambitious price targets throughout the bitcoin community of which they expect to see a $40,000 coin in the near future.
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30 Jun
0
California lawmakers pass bill to update currency law
 |
| Image: GetToKnowBitcoin |
Bitcoin is now a legal form of payment within the state of California thanks to a new bill signed into law yesterday by Governor Jerry Brown.“This bill is intended to fine-tune current law to address Californians’ payment habits in the mobile and digital fields,” said the bill’s author, Democratic Assemblyman Roger Dickinson in a press release.
He cited the popularity of Bitcoin, and said even gift cards and reward points from retailers could be considered illegal under the current law.
“In an era of evolving payment methods, from Amazon coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives,” Dickinson said.
It may seem a little strange that Bitcoin wasn’t already legal within the state — considering how large a role Silicon Valley played in both legitimizing and showing the business potential of all crypto-currencies. Also, Bitcoin was already being used by a number of businesses in the state as well as Bitcoin ATMs.
The bill itself actually repealed an older state law that prohibited the use of any currency other than the U.S. dollar. With the repeal in place, Californians are now free to use Bitcoin, other crypto-currencies, and even rewards points from loyalty programs.
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26 Jun
0
Swiss government report: Bitcoin too ‘insignificant’ for legislation
(CoinDesk) Switzerland’s Federal Council has published a report stating that,
for the time being, it will not create legislation relating specifically
to bitcoin or other digital currencies.
for the time being, it will not create legislation relating specifically
to bitcoin or other digital currencies.
The government report
claims the economic importance of these currencies is currently “fairly
insignificant” and the council doesn’t expect this to change in the
near future.
claims the economic importance of these currencies is currently “fairly
insignificant” and the council doesn’t expect this to change in the
near future.
This report has been created following the submission
of postulates by National Councillors Jean-Christophe Schwaab and
Thomas Weibel last year, which asked the Federal Council to examine the risks and opportunities associated with bitcoin.
of postulates by National Councillors Jean-Christophe Schwaab and
Thomas Weibel last year, which asked the Federal Council to examine the risks and opportunities associated with bitcoin.
No ‘legal vacuum’
A
point the government is keen to stress in the report is that virtual
currencies are not in a “legal vacuum”, meaning that existing laws apply
to activities associated with these currencies. It states:
point the government is keen to stress in the report is that virtual
currencies are not in a “legal vacuum”, meaning that existing laws apply
to activities associated with these currencies. It states:
“Contracts
with virtual currencies are enforceable in principle and penalties can
be imposed for criminal offences associated with virtual currencies.
Certain business models based on virtual currencies are subject to
financial market laws and need to be subjected to financial market
supervision.
Professional trade in virtual currencies and the
operation of trading platforms in Switzerland generally come under the
scope of the Anti-Money Laundering Act. This includes compliance with
the obligation to verify the identity of the contracting party and
establish the identity of the beneficial owner.”
Some
of the laws that apply to certain uses of digital currency include the
Swiss Code of Obligations, the Federal Act on Combating Money Laundering
and the Financing of Terrorism in the Financial Sector, plus the
Federal Act on Banks and Savings Banks.
of the laws that apply to certain uses of digital currency include the
Swiss Code of Obligations, the Federal Act on Combating Money Laundering
and the Financing of Terrorism in the Financial Sector, plus the
Federal Act on Banks and Savings Banks.
Legal certainty
Schwaab
told CoinDesk he was pleased the report had clarified the legal status
of bitcoin: “The report ensures legal certainty. That’s the most
important topic at this point. Now, people who trade bitcoin can know
which financial sector regulation applies or not.”
told CoinDesk he was pleased the report had clarified the legal status
of bitcoin: “The report ensures legal certainty. That’s the most
important topic at this point. Now, people who trade bitcoin can know
which financial sector regulation applies or not.”
He went on to say he thinks the report underestimates the economic potential of bitcoin. He said:
“The more I learn about bitcoin, the less I remain sceptical about it!”
“That’s
a big mistake for a country like Switzerland with a strong financial
sector. I hope the banking sector will be cleverer than the Government
on that point, but I’m pessimistic.”
a big mistake for a country like Switzerland with a strong financial
sector. I hope the banking sector will be cleverer than the Government
on that point, but I’m pessimistic.”
Schwaab even went as far as to suggest he is personally becoming increasingly bullish about digital currency.
“In
the last months, my personal views about bitcoin have evolved: the more
I learn about bitcoin, the less I remain sceptical about it!”
the last months, my personal views about bitcoin have evolved: the more
I learn about bitcoin, the less I remain sceptical about it!”
Alexis
Roussel, CEO of Swiss based cryptocurrency broker SBEX, said the report
represented good news for the Swiss bitcoin ecosystem.
Roussel, CEO of Swiss based cryptocurrency broker SBEX, said the report
represented good news for the Swiss bitcoin ecosystem.
He was particularly interested in the parts of the report that are relevant to his company’s plans to deploy a bitcoin ATM network within Switzerland.
“Managing
an ATM would be considered directly as money transmitting service, with
tighter rules. This is starting to shape how bitcoins ATM will work,”
Roussel said.
an ATM would be considered directly as money transmitting service, with
tighter rules. This is starting to shape how bitcoins ATM will work,”
Roussel said.
He explained it means ATM operators would always
need to be licensed, unless they can ensure the user is in control of
the private key of the bitcoin wallet they are sending to.
need to be licensed, unless they can ensure the user is in control of
the private key of the bitcoin wallet they are sending to.
“This
is imposing high standards in the bitcoin financial world, but this will
be beneficial for consumers in the end,” he added.
is imposing high standards in the bitcoin financial world, but this will
be beneficial for consumers in the end,” he added.
The risks
The
report gives examples of the risks associated with bitcoin, stating
that, while there is no risk of it damaging the country’s existing
financial sector, consumers are vulnerable to volatility and security
issues.
report gives examples of the risks associated with bitcoin, stating
that, while there is no risk of it damaging the country’s existing
financial sector, consumers are vulnerable to volatility and security
issues.
It concludes by advising consumer protection organisations within the country to urge people to use caution when using bitcoin.
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21 Jun
0
Swiss regulators give green light for Bitcoin ATM Network
(CoinDesk) The Swiss financial regulator has given permission for bitcoin ATM operator SBEX to launch a network of machines in the country. The news comes in the wake of a report indicating that the authority had shut down a different operator just two weeks ago.
Jumping through regulatory hoops
SBEX, which currently operates one ATM in Geneva, can now deploy further machines because it has been accepted as a member of a non-profit organisation that is regulated by FINMA, the Swiss Financial Market Supervisory Authority. The non-profit is called ARIF, the Association Romande des Intermédiaires Financiers, and is considered a self-regulatory body (OAR) in Switzerland. Now, with membership in hand, SBEX has successfully applied for a money transmitter licence, fulfilling the regulatory requirements to operate an ATM network.
CoinDesk has seen a copy of a letter from ARIF to the operator, dated 17th June, that sets out the regulator’s stance on bitcoin ATM operators. According to the letter, operators must join an OAR, but do not require a banking licence. It also restated that bitcoin in Switzerland is treated as a means of payment, not a good or a service. SBEX co-founder Mathieu Buffenoir said:
“We finally got clearance from ARIF, who were asking FINMA many questions about how they should deal with us. [The clarification from ARIF] is what we were expecting.”
Cancelled ATM launch
Two weeks ago, a competing ATM operator called Bitcoin Suisse AG cancelled the launch of an ATM in Zurich, claiming that FINMA had requested a delay while the regulator clarified “legal questions”. This prompted speculation that Swiss authorities were clamping down on bitcoin ATMs.
However, according to Buffenoir, who has operated a machine in Geneva since February, running a single bitcoin ATM poses no special regulatory difficulties and is not regulated by FINMA.
This does come with the proviso that the business must stay within certain limits, such as completing fewer than two million transactions a year, Buffenoir said, adding:
“I don’t really know why [Bitcoin Suisse AG] made so much noise [about its ATM]. Maybe they wanted to get themselves known or they want things to move quicker.”
Bitcoin Association Switzerland president Luzius Meisser said the clarified rules were in line with the bitcoin community’s expectations, calling it “the most reasonable” interpretation of Swiss law. He explained the confusion over Bitcoin Suisse’s suspended launch:
“I think SBEX fulfilled all the regulatory requirements before Bitcoin Suisse did, so they got the approval first.”
Bitcoin Suisse chief executive Niklas Nikolasjen said his firm was working on obtaining the necessary regulatory approvals for their ATM. He said the media had overstated his firm’s cancelled ATM launch and that it had been consistently working to obtain regulatory approval.
“It is now clear to everyone in the industry that the regulatory authorities require certain steps to be undertaken by companies who professionally deal with digital finance. BTCS is naturally following these requests as well,” he said.
Expansion plans
Now that SBEX has cleared Swiss regulatory hurdles, Buffenoir says the company will carry out its plan to set up a web brokerage and install nine ATMs before the year is up. Buffenoir said SBEX has already placed orders for the machines with the manufacturer, Canadian startup BitAccess.
Additionally, SBEX has joined a new consortium currently lobbying the Swiss government to create an OAR dedicated to cryptocurrencies and to obtain a clearer regulatory framework from FINMA. The consortium already counts Bitcoin Suisse and Ethereum Switzerland among its members, Buffenoir said. Switzerland is being closely watched by the cryptocurrency community, as its executive body, the Federal Council, is due to release a comprehensive report on bitcoin’s impact on the country’s financial system later this year. Swiss lawmakers also moved, in December, to obtain recognition for bitcoin as a foreign currency.
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19 Jun
0
Italy house of parliament hosts bitcoin believers
 |
| Bit-Wallet at Bitcoin Meetup in Rome Photo by G. Baroncini Turricchia |
(CoinDesk) Italian bitcoin enthusiasts gathered at the Chamber of Deputies, the
lower house of the Italian parliament, in Rome on Wednesday with the aim
of informing Italian lawmakers about the economic benefits of bitcoin.
lower house of the Italian parliament, in Rome on Wednesday with the aim
of informing Italian lawmakers about the economic benefits of bitcoin.
The 11th June event, organised by bitcoin consultancy Coin Capital, featured participation from parliament member Stefano Quintarelli and Senate Vice President of the Treasury and Finance Committee Francesco Molinari, as well as representatives from Italy’s academic and banking sectors.
Coin Capital told CoinDesk that the first two hours saw its partners Sebastiano Scròfina and Guido Baroncini Turricchia, University of Rome ‘Tor Vergata’ telecommunications professor Francesco Vatalaro and investment bank Banca IMI’s Ferdinando Ametrano introducing blockchain technology and its monetary applications.
At the event, Bit-Wallet also unveiled the country’s first domestically produced bitcoin ATM.
Baroncini Turricchia characterized the remainder of the day’s events, stating:
“Risk and opportunity were clearly disclosed in a neutral way. In the second part, [a representative moderated a] discussion between politicians, institutions and business, and [many questions were asked by these participants].”
The events come in the wake of the Central Bank of Italy’s May warning that domestic investors should avoid buying, investing in or using bitcoin as a currency due to price volatility and the lack of consumer protection laws to protect consumers.
Proliferating bitcoin
A second, non-affiliated event, organized by digital payment advocacy group CashlessWay, is set to take place on 26th June. Speakers will include bitcoin banking provider Robocoin CEO Jordan Kelly and parliament member Sergio Boccadutri, who presented a proposal for regulating bitcoin under existing Italian law in January.
Robocoin indicated it is looking forward to the event as a way to help educate an influential government about the nascent technology, stating:
“Italy is full of cultural tastemakers and has a rich history in banking and finance. These all support Robocoin’s goal of helping proliferate bitcoin.”
For more information on the 11th June event, visit Coin Capital’s website.
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19 Jun
0
Japan’s ruling party says won’t regulate bitcoin for now
| A man walks past a building where Mt. Gox, a digital marketplace operator, is housed in Tokyo February 25, 2014. |
Japan’s leading Liberal Democratic Party said it decided against regulating bitcoin for the time being, after the collapse of Tokyo-based bitcoin exchange Mt.Gox prompted them to consider more scrutiny of the virtual currency.
Mt.Gox, once the world’s biggest bitcoin exchange, filed for bankruptcy in February after saying hackers stole 750,000 bitcoins belonging to its customers.
“Basically, we concluded that we will, for now, avoid a move towards legal regulation,” Takuya Hirai, an LDP lawmaker who leads the party’s internet media division, said on Thursday, adding that a final decision would be made after hearing more opinions on the subject
The use of electronic currencies has drawn the attention of governments around the world who are unsure whether, and how, to regulate them. U.S. agencies ranging from the New York bank regulator to the Commodity Futures Trading Commission have also been looking into possible regulation.
A task force of U.S. state regulators is also working on the first bitcoin rulebook, hoping to protect users of virtual currency from fraud without smothering the fledgling technology.
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19 Jun
0
Privatise the pound and replace it with bitcoin, says free-market thinktank
 |
| A man enters a bitcoin conference in New York. Photograph: Mark Lennihan/AP |
(TheGuardian) UK should privatise the pound and replace it with a
cryptocurrency like bitcoin, according to a paper published Wednesday by
the free-market Institute of Economic Affairs.
cryptocurrency like bitcoin, according to a paper published Wednesday by
the free-market Institute of Economic Affairs.
Kevin Dowd, a
professor of finance and economics at Durham University, says that
although bitcoin isn’t the first example of private money, it is the
first that governments can’t shut down. Therefore, he says, authorities
should admit that it’s here to stay, and allow competition on a level
playing field between all alternative forms of money.
professor of finance and economics at Durham University, says that
although bitcoin isn’t the first example of private money, it is the
first that governments can’t shut down. Therefore, he says, authorities
should admit that it’s here to stay, and allow competition on a level
playing field between all alternative forms of money.
That might
include allowing taxes to be payed in cryptocurrencies such as bitcoin
and dogecoin, or even fully privatising the pound, selling off the right
to mint the currency to the highest bidder.
include allowing taxes to be payed in cryptocurrencies such as bitcoin
and dogecoin, or even fully privatising the pound, selling off the right
to mint the currency to the highest bidder.
“Let’s suppose that
bitcoin became a very prominent currency,” Dowd told the Guardian. “[To
ensure a level playing field], the government itself would accept
bitcoin in tax payments. So, in effect, the government should not be
favouring its own currency, or any particular currency, through any of
its unique powers. Nor have regulations against them.
bitcoin became a very prominent currency,” Dowd told the Guardian. “[To
ensure a level playing field], the government itself would accept
bitcoin in tax payments. So, in effect, the government should not be
favouring its own currency, or any particular currency, through any of
its unique powers. Nor have regulations against them.
“The natural
analogy is with some of the old, bad, monopolies like British Gas or
British Telecom. Telecom is a very good example: for a long time, we had
a government monopoly, which stifled innovation, and the service was
poor. Once that got opened up, competition opened, new innovation
prospered, and we got all sorts of innovation that we couldn’t possibly
anticipate, and we’re a lot better off for it.”
analogy is with some of the old, bad, monopolies like British Gas or
British Telecom. Telecom is a very good example: for a long time, we had
a government monopoly, which stifled innovation, and the service was
poor. Once that got opened up, competition opened, new innovation
prospered, and we got all sorts of innovation that we couldn’t possibly
anticipate, and we’re a lot better off for it.”
Dowd places
bitcoin at the pinnacle of a historical trend of government crackdowns
on attempts to create private money. The Liberty Dollar, a physical,
gold-based private mint, and e-gold, a digital, gold-based e-currency,
both ended up with their creators and proprietors in court, the former
on charges of counterfeiting, and the latter over allegations of money
laundering.
bitcoin at the pinnacle of a historical trend of government crackdowns
on attempts to create private money. The Liberty Dollar, a physical,
gold-based private mint, and e-gold, a digital, gold-based e-currency,
both ended up with their creators and proprietors in court, the former
on charges of counterfeiting, and the latter over allegations of money
laundering.
But Dowd argues the charges were
politically-motivated protectionism. “Counterfeit 101 is that you try
make the fake look like the real thing,” he says, “and the whole
business model was predicated on saying that [the Liberty Dollar] is
superior to US currency.”
politically-motivated protectionism. “Counterfeit 101 is that you try
make the fake look like the real thing,” he says, “and the whole
business model was predicated on saying that [the Liberty Dollar] is
superior to US currency.”
Because Bitcoin is decentralised, it’s
significantly harder to crack down on using the courts – “you could shut
the whole web down, but they can’t do that,” Dowd adds – and so
governments can’t stop its rise. If it does become popular, they will
have to deal with it some other way.
significantly harder to crack down on using the courts – “you could shut
the whole web down, but they can’t do that,” Dowd adds – and so
governments can’t stop its rise. If it does become popular, they will
have to deal with it some other way.
There’s a lot standing in the
way of cryptocurrencies before they reach that success, however. For
one thing, Dowd writes, “to displace existing state currency they not
only have to perform the basic functions of money at least as well as
state money, they probably also need qualities that transcend the way in
which state money works.”
way of cryptocurrencies before they reach that success, however. For
one thing, Dowd writes, “to displace existing state currency they not
only have to perform the basic functions of money at least as well as
state money, they probably also need qualities that transcend the way in
which state money works.”
For some advocates of bitcoin, as well
as for Dowd himself, those qualities come in the form of protection
from inflation: the cryptocurrency will only ever have 21m coins
created, ensuring that it will always “hold its value” (though also,
critics claim, rendering the bitcoin economy prone to deflationary
slumps).
as for Dowd himself, those qualities come in the form of protection
from inflation: the cryptocurrency will only ever have 21m coins
created, ensuring that it will always “hold its value” (though also,
critics claim, rendering the bitcoin economy prone to deflationary
slumps).
For others, they come from the purely digital nature of the currency. Venture capitalist Marc Andreessen describes it
as the financial equivalent of the internet, saying “The internet was a
new way to transmit data. Bitcoin’s a new way to transmit money. It’s
going to take a long time. The good news it’s a big opportunity. Money
is a very big deal, and so if you can build a new way to deal with
money, it’s very important and valuable. It just takes time.”
as the financial equivalent of the internet, saying “The internet was a
new way to transmit data. Bitcoin’s a new way to transmit money. It’s
going to take a long time. The good news it’s a big opportunity. Money
is a very big deal, and so if you can build a new way to deal with
money, it’s very important and valuable. It just takes time.”
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19 Jun
0
Swedish central bank acknowledges benefits of cryptocurrencies
(CoinDesk) Sveriges Riksbank, Sweden’s central bank, has published a brief economic commentary on the impact of digital currencies on the retail payments market.The document outlines the basics behind digital currencies and focuses on bitcoin, but it also mentions some altcoins such as litecoin and dogecoin. Aside from a relatively basic introduction to digital currencies and background information for novices, the document also sheds light on the state of bitcoin in Sweden and the bank’s attitude towards bitcoin and other cryptocurrencies.
Take-up remains limited
The Sveriges Riksbank report found that the use of digital currencies in Sweden remains very limited. The authors point out that it is particularly difficult to obtain accurate information on the use of digital currencies in different countries, hence most analyses are usually limited to the total issue value and global usage. The report tries to isolate Sweden and examine transactions limited to Swedish krona (SEK) exchanges. Even so, the data may not be complete, as it only deals with transactions involving SEK.
“On average, around 212 bitcoins per day were converted to or from SEK during the period December 2012 to May 2014 at an average value of just over SEK 266,000. However, the daily value varied substantially, between SEK 2,500 and SEK 2.5 million, depending on the exchange rate and the number of bitcoins exchanged,” the report notes.
The authors caution that the statistics are incomplete, as there is no data on transactions between private persons and other movements of funds that could be relevant. Therefore, they concede, the exchange statistics may underestimate the use of bitcoin in Sweden. However, the report concludes that the values involved in cryptocurrency transactions pale in comparison to traditional transactions. This is how bitcoin stacks up:
“Households make daily payments using cards and cash totalling 8 million in volume and to a total value of over SEK 3 billion. Even if the use of bitcoin in Sweden were to be much larger than the average exchange value of just over SEK 266,000, this is a relatively low value in relation to other types of payment. At present, there only seem to be around 25 swedish companies accepting Bitcoin.”
Risky but innovative
Although the report contains the usual set of caveats found in most central bank statements involving digital currencies, it also includes some relatively positive commentary. The report states that digital currencies are one of many innovations in the Swedish payments market and like other innovations, digital currency is essentially positive:
“It can contribute to meeting new payment needs and to making payments cheaper and more secure. Those who choose to use a particular payment service can be expected to do so because it gives them an added value in relation to other payment services. This also applies to virtual currencies, which can for instance make some cross-border payments simpler, faster and cheaper. Another advantage is if the payer does not need to share sensitive information, such as card number or bank account number, with the payee.”
Cryptocurrencies may also be better suited for micropayments made via websites, the report further notes. Disadvantages associated with digital currency platforms include lack of clear regulation, lack of consumer protection regulation, volatility, security risks and the risk of using digital currencies for illicit transactions. The report concludes that the impact of any innovation depends on how much it is used. The use of digital currencies is “very limited” both in terms of the number of users, the number of transactions and the value involved in said transactions. Therefore both the positive and negative effects of digital currencies on the payment market in Sweden are currently negligible.
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10 Jun
0
First Bitcoin hearings at the Italian Parliament tomorrow
Tomorrow, in the Aldo Moro meeting room of the Italian Parliament there will be a consultation on the open source Bitcoin protocol. The technical aspects will be introduced by:
- Sebastiano Scrofina – CEO and Co-Founder at Dropis
- Guido Baroncini Turricchia – CoinCapital’s Partner
- Francesco Vatalaro – Università Di Tor Vergata
- Massimo Bernaschi – CNR
- Ferdinando Ametrano – Banca IMI – Università Bicocca
- Roberto Tudini – Studio Tudini&Tudini
In the second part there will be a round table that will allow for the comparison of ideas and the points of view of different stakeholder. The event is organized by the On. Quintarelli and CoinCapital, bringing the Bitcoin inside the walls of the Italian Parliament allowing to highlight the risks and the opportunities.Offering to the parliament a first overview and a neutral basis to start an aware and balanced discussion.
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30 May
1
The difficulty of getting Bitcoin to catch on in Italy
Italy’s
first Bitcoin ATM was a Lamassu machine, installed in Udine,
a northeastern city nestled between the Alps and the Adriatic
Sea.
first Bitcoin ATM was a Lamassu machine, installed in Udine,
a northeastern city nestled between the Alps and the Adriatic
Sea.
(CoinTelegraph) That’s wine country, and you would need plenty of it to wash
down the stuffed gnocchi.
down the stuffed gnocchi.
The machine’s owner, Luca Dordolo, is often nearby to assist
anyone who needs help using the machine (it’s located in the hall of his family’s business).
He’s even had the interface translated into the local Friulian language, as
well as Italian.
anyone who needs help using the machine (it’s located in the hall of his family’s business).
He’s even had the interface translated into the local Friulian language, as
well as Italian.
Dordolo’s vision is to create an Italian hub for Bitcoin, and
his next step at this point is to install more machines around the country.
his next step at this point is to install more machines around the country.
Obstacles, both legal and cultural, are making this difficult,
though.
though.
Legal Obstacles
First, Dordolo laments the “lack of relevant legislation” in Italy
regarding Bitcoin, forcing him to operate in a grey area with which many
Bitcoin entrepreneurs are familiar.
regarding Bitcoin, forcing him to operate in a grey area with which many
Bitcoin entrepreneurs are familiar.
Before buying that first Lamassu ATM, Dordolo said he had a
pool of attorneys and legal experts advise him on what he could and could not
do. Italy,
they told him, does not regulate Bitcoin itself, nor are there any
know-your-customer regulations, but any transactions above 999.99 EUR need to
be reported.
pool of attorneys and legal experts advise him on what he could and could not
do. Italy,
they told him, does not regulate Bitcoin itself, nor are there any
know-your-customer regulations, but any transactions above 999.99 EUR need to
be reported.
So, that was the limit he set.
Here is what BitLegal says about Italian legislation:
“The use of electronic
currency is restricted to banks and electronic money institutions — that is,
private legal entities duly authorized and registered by the Central Bank of Italy.
Aside from these developments, Italy
does not regulate Bitcoin use by private individuals, and currently the
implementation of initiatives concerning the use of electronic currencies lies
with the EU.”
Dordolo is not confident Italian law will catch up with the
technology.
technology.
“Banca d’Italia is
studying the [Bitcoin] phenomenon, and perhaps — if they were fast — in 10-20
years we could have a law on it.”
Cultural Obstacles
Dealing with murky Italian laws is one thing. Dealing with
local perception is something else entirely, Dordolo said.
local perception is something else entirely, Dordolo said.
“In Italy, we are at the beginning of
Bitcoin’s spreading among the population. There is an interesting Bitcoin
community [in Italy],
but it is still very hard to explain to Italian people the real value that
Bitcoin creates in the economy and the job opportunities it creates.This is because of
misinformation by the national media that actually regard it as a scam or worst
as associated with criminal deeds.Even the local Bitcoin
Foundation is not as active as it should be, so whatever can move this
situation is welcome.”
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