Virtual Currencies - A Question Of Trust

The pressing need for regulatory clarification on Bitcoin and other virtual currencies in Europe and beyond.

With the networked world becoming increasingly aware of Bitcoin and other virtual currencies within the past months, there are still several unknowns in the realm of virtual currencies. And the unknown doesn't exist only at the level of consumers. Regulators are having clear difficulty in tackling the phenomenon of virtual currencies. A full year has gone by since the publication of the European Central Bank's analysis of Virtual Currencies in October 2012 and little, if any, action appears to have ensued within the EU's institutions.  

In essence, the ECB's analysis acknowledges that given the technical innovation and ease of proliferation brought about by the internet, it is inevitable that interest in and use of virtual currency schemes will grow in an exponential manner. It also recognises the fact that since such currencies are not often bound to a