Publisher's Synopsis
The uses of virtual currencies have proliferated in recent years. Getting it right from all of the regulatory, financial, and consumer points, poses a great challenge. While these virtual currencies are not yet widely accepted, the number of users continue to grow, and we must recognize that these innovations decentralize digital payment systems. Already the Federal Election Commission (FEC) has allowed political contributions to be made in bitcoins. With every new Internet-based technology, members of Congress should recognize that we often do not know what these new advancements will development into. Indeed, illicit actors have exploited the vulnerabilities of virtual currency to launder money, and the Department of Justice has alleged that customers of Silk Road, the largest contraband marketplace on the Internet, were required to pay in bitcoins to evade detection and facilitate laundering hundreds of millions of dollars. While we must ensure proper safeguards, hearings like this can help to maintain an environment that continues to promote new financial technologies and innovative growth.
