Fed Positive About Bitcoin

Janet YellenThe appeal of Bitcoin, for many, has been the fact that it is unregulated. Therefore, the idea of regulating the currency makes many uncomfortable. To ease those worries, the Federal Reserve Chairwoman, Janet Yellen said in February that the Fed as a regulatory entity has no authority over digital currency. Those who were worried about regulation rejoiced and continue to use and celebrate the ease of transaction with Bitcoin. However, not everyone was pleased about Yellen’s announcement.

Some who have invested in Bitcoin feel that regulation may be the key to helping the digital catapult into the mainstream. Barry Silbert, the CEO of SecondMarket is one of those who feels that Bitcoin could use a bit more regulation. Silbert is an investor in the digital currency and one of its largest proponents, but he believes that more regulation is the only way for Wall Street to have a larger involvement in the digital currency landscape overall. Based on a document that was released earlier in May, it seems that the Federal Reserve Advisory Committee agrees with Silbert. The document notes that the lack of regulation allows Bitcoin to be used for illicit activities and that Bitcoin does not demonstrate any threat to current avenues of commerce, but could rather open up new pathways. The report specifically states that Bitcoin’s “global transmissibility opens new markets to merchants and service providers…Driving capital flows from the developed to the developing world should increase consumption.” This advisory council, the FAC, is made up of the most elite in the banking industry. Bitcoin is continuing to grow in popularity around the world and with a ringing endorsement from the FAC and a successful Bitcoin conference in Amsterdam, the stock is climbing, so it may be time for the Fed to get involved to make the most of this digital currency phenomenon.