Bitcoin, in deal with French financial firms, gets officially recognized under EU law as a "ban

12-10-2012 • BBC News

As a Payment Services Provider it will be able to issue debit cards, carry out real-time transfers to other banks and accept transfers into its own coffers.

It also means that deposits held at Bitcoin-Central would be backed by the same compensation laws and schemes that apply to cash held in other bank accounts. However this protection only applied to balances held in euros rather than bitcoins.

The move could convince many organisations and businesses to start accepting bitcoins as payment.

"The more we see governments and banks being willing to deal with Bitcoin, the more comfortable a lot of organisations are going to be making the step forward themselves,"said Vitalik Buterin, technical editor of Bitcoin magazine.

Also read a critique of this move in FORBES that is not so positive here http://www.forbes.com/sites/jonmatonis/2012/12/09/bitcoins-greatness-not-realized-by-succumbing-to-regulation/

1 Comments in Response to Bitcoin, in deal with French financial firms, gets officially recognized under EU law as a "ban

Comment by PureTrust

Entered on: 12/10/2012 5:45:50 AM

Recognition by the banking industry means that the banks are starting in their attempt to absorb bitcoin into their realms. This means that it might become illegal in the future to own bitcoins without some kind of banking authorization.

Look at what has happened with marijuana. There is such a gigantic war against marijuana that, even though the war is not making a dent in reducing marijuana use, anyone that uses it becomes a potential target for midnight raids and property confiscation. And it even overflows against many who do NOT use marijuana.

Just think what would happen if 10% or more of the population starting using bitcoin, and suddenly all the governments of the world made it illegal. This could mean that the war on drugs would spread to bitcoin. Since it is difficult to tell who uses bitcoin and who doesn't because of the encryption involved, everyone in the world could become a target of law enforcement any time, anywhere, for any reason, with bitcoin used as the excuse.

If we're going to have freedom in the world, we're going to have to outlaw govenments from messing in the affairs of people, except when it can be proven that a person has DIRECTLY harmed someone else or damaged the other person's property. That's it. That's all there needs to be for freedom. PERIOD.

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