US Govt. softening Stance against Bitcoin for Online Gambling
Over the past year, one virtual currency that’s intrigued online gamblers is Bitcoin. Unlike funds exchanged on payment processors, Bitcoin isn’t backed by a central bank or government. Instead, this currency is valued at whatever people are willing to pay for it.
Seeing as how there’s no government or bank controlling Bitcoin, it can easily be used to make online gambling transactions – even in countries where there are restrictions. And for this reason, the United States government has taken an unfavorable view of Bitcoin. US lawmakers also don’t appreciate the fact that this cyber currency has been used to purchase illegal drugs too.
However, it appears as if Uncle Sam may be softening the hardline stance against Bitcoin as of late. U.S. Federal Reserve Chairman Ben Bernanke provided some encouraging words when he said that using currencies like Bitcoin could hold “long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.”
Just this simple statement was enough to send the currency’s value skyrocketing once again. Bitcoin shares jumped from $400 to $900, before finally settling in at $777. This is even more impressive when you consider that, just two years ago, it was only worth $0.30 a share.
Besides the price jolt, Bitcoin also received the benefit of being discussed among Congressmen earlier this week. Following Bernanke’s words, Congressmen discussed virtual currencies for over three hours.
Many people see Bitcoin as the future in banking for online gambling sites – especially when concerning online poker. However, at the moment, there are only a handful of sites which accept the currency. This might change, though, if it keeps gaining legitimacy in the eyes of government leaders across the world.