Bitcoin Invades Mainstream Banking System
Michael Maloney – Bitcoin Invades Mainstream Banking System
Digital Currency Exchange, Bitcoin-Central, has been authorized by the French government to conduct bank style operations. In an announcement last month on bitcointalk.org, Paymium, the organization behind Bitcoin-Central said this:
We’re announcing today that Bitcoin-Central.net is getting, through a partnership with Aqoba, allowed to operate like a bank, (or more precisely like a PSP [Payment Service Provider], which is basically the same as a bank, just without the debt-money issuing part).
If you’ve been following the crypto-currency story, you will realize that this is a huge step forward. For the first time a crypto-currency exchange has been brought into the mainstream banking circle, allowing believers in the idea of free choice in currency the opportunity to transact business through traditional channels.
Bitcoin is, fundamentally, a currency; and, like any other currency, its purpose is to provide a means of exchanging good and services between individuals. Unlike government-sanctioned currency, however, the premise of Bitcoin is to remove the centralized, governing force from taking over the creation of the currency.
Bitcoin is a system of owning and voluntarily transferring amounts of so-called bitcoins, in a manner similar to an on-line banking, but pseudonymously and without reliance on a central authority to maintain account balances. If bitcoins are valuable, it is because they are useful and limited in supply.
Bitcoin is based on a concept known as crypto-currency that was originally described in 1998. Subsequently, Satoshi Nakamoto developed the first software to power Bitcoin, but no one knows exactly who Nakamoto is. He has remained an enigma even though his software is now used by millions of people to process millions of transactions representing millions of dollars in non-government controlled currency.