Since the digital currency bitcoin burst in to the scene in 2009, serious skepticism and palpable passion have played equal roles. Bitcoin and blockchain regulation has been a hot topic at conferences and on the nascent technology’s online forums. Bitcoin, known for its anarchist and libertarian leanings, fear government legislators and regulators. Many bitcoin devotees wanted little to do with government legislators or regulators and regulators were dubious of this new currency.
The Obama administration should move quickly to embrace bitcoin and blockchain technology, a former government regulator has argued.
Bart Chilton (CFTC) said : “Without some proactive step(s), such as a self-regulatory organization (SRO) and/or word from on high by the president, the U.S. could lose out on what are potentially enormous economic benefits.”
He thinks that the US is at risk of missing out on potential economic value by not more openly supporting the technology in its nascent days.
In his declaration Chilton – who favorably pointed to regulatory moves in the European Union as a potential model for US action – called the current an opportunity that requires action soon.
“There is a huge opportunity that can be tapped into if US government officials and industry thought-leaders establish an appropriate balance between basic consumer protection regulation and an openness which not only permits, but fosters and promotes, innovation,” he wrote, concluding: “We did it with the internet — and we need to do it now with virtual currencies like bitcoin.”
The Obama Administration presses the need to empower small businesses to succeed and the Small Business Administration focuses on initiatives toward this goal. Unleashing this financial services technology could enable small businesses to strengthen their cash flow by providing low-cost financial services. This will help American entrepreneurs, as well as billions of other people around the globe. According to the World Bank, 74% of the world’s populations do not have access to basic financial services. Bitcoin could be the fastest and simplest way to bring financial services to these populations.
Bitcoin and other similar technologies provide the next generation of financial services. As Trace Mayer, serial Bitcoin entrepreneur, recently said: “Companies need a Bitcoin strategy just as in the mid-1990s they needed an Internet strategy.”
As the Obama Administration promotes the importance of small businesses across America this week, we should not overlook the advancements being made in financial services technology by small businesses. Bitcoin is a nascent technology with potential that has been compared to the Internet. This technology is being driven by small businesses that are fighting to revolutionize e-commerce.
