Has Bitcoin gone legit?


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Bitcoin is now money as defined by the US legal system and can now be accepted by various local municipalities thanks to a new software system called  E-Gov Link.

The so-called “cryptocurrency” once best known for providing anonymity to those who buy drugs on black-market websites is suddenly the hottest new toy of venture capitalists and entrepreneurs. The Bitcoin economy has risen into the billions of dollars, and now everyone wants in on the action.

The currency that was once celebrated as a counterculture, underground phenomenon has — dare we say — gone mainstream. So much so that government is now taking a closer look at Bitcoin, which is not backed by a nation and is available only digitally.

Some financial experts and Bitcoin enthusiasts say government intervention is necessary to legitimize and protect the currency. But others are worried that Bitcoin will lose its luster as the public sector gets involved.

 A Texas man accused of running a bitcoin Ponzi scheme cannot dodge securities fraud claims by denying that the virtual currency is money, a federal judge ruled Tuesday.

In court last week, Mr Shavers argued that his bitcoin investment plan (i.e, Ponzi scheme) was not under the jurisdiction of the SEC because Bitcoin is not money, and is not part of anything regulated by the the Securities and Exchange Commission or the United States legal system.

Wrong.

So says, Judge Mazzant in a four-page order the US Magistrate found that federal securities law gives the court subject matter jurisdiction over the case. “Bitcoin is a currency or form of money,” the judge wrote. Mazzant added in support of his finding that investors expected a profit and that a common enterprise existed.

Source: Court House News

In other news, Bitcoin can now be accept by various local municipalities.

A small e-government services firm called E-Gov Link has heard this dual sentiment more than most. When the Cincinnati-based company announced this spring that acceptance of Bitcoin payments was an option within the back-end software it provides to local governments, strongly worded opinions poured in immediately. There were mixed feelings about the idea that a local government could opt in on the new feature, which would accept Bitcoins from citizens when they pay for permits, parking tickets and other common services.

“People’s reactions ranged from those who said ‘this is the beginning of the end’ — real paranoia — to people who said, ‘This is great because the best way to prevent the federal government from outlawing Bitcoin is if local government uses it,’” said Jerry Felix, vice president of software development at E-Gov Link.

source: http://www.governing.com/blogs/view/gov-military-gang-software-bitcoin.html

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