Virtual Currency In Bermuda: One "Bit" At A Time

Many people in Bermuda will now have heard of virtual currencies, most likely in conjunction with "Bitcoin".

However, beyond an understanding of the idea that a virtual currency is some form of asset without a physical form, the conversation of what it is and how it could be integrated into Bermuda often goes no further.

This article puts forward a high level overview of what a "virtual currency" is and identifies some of the ways in which it may be utilised so as to complement Bermuda's already thriving reputation as a place to do business. It does so while also outlining some of the obstacles that would need to be considered in order to do so successfully.

The Financial Action Task Force (FATF) is an inter-governmental body whose members include Canada, the United Kingdom and the United States. FATF describes a virtual currency as being a "digital representation of value that can be digitally traded and functions as (1) a medium of exchange; and/or (2) a