The central banks are looking at using a Virtual Currency. Could Bitcoin Gambling become the norm, one online casino already accepts Bitcoin payments.
The Advantage for Banks to use a Virtual Currency
The Bank of England and other Central Banks have stepped up their research into digital currencies. Bitcoin was the first but now there are others and it is catching on as an online payment system. Crytpocurrency or Virtual currency are other names used for digital currency. A universal name has yet to emerge, could it be Bitcoin?
No doubt the success of digital currency has prompted the Banks to examine using it in case they get left behind as digital currency takes over the world. Also, currency brokers and Forex traders will also be looking at this carefully so they also do not miss out.
There are some issues to resolve. Firstly, they have to decide how a shift towards using digital currency would affect banking systems and the economy. The second major hurdle is security. Bitcoin has often been a target for hackers and cyber criminals. Another major factor is that injecting digital money into an economy would speed up transactions and make them more efficient. The cost of handling cash could be significantly reduced. The scope for cross border transactions using a digital currency could take away exchange rate worries for many businesses. Could hard cash become a thing of the past?
Some analysts are saying that the emerging economies could benefit from a digital currency. Billions of people in many countries do not have bank accounts. If using a digital currency catches on it might not be necessary to even have a bank account. Digital currency could be stored on a mobile phone. Using a virtual currency is an attractive proposition for people who do not live anywhere near to a Bank.
Could Bitcoin Gambling take off?
All of this is conjecture because no-one is taking the lead. It could be many years before international policies for digital currency are agreed. The Banks may have to examine live practices as they develop but they certainly will not want to become dinosaurs. Possibly the market will influence bankers into developing policy but that will take time.
Gambling with Bitcoin is already taking off. By this we mean using a virtual currency to credit or debit your account in an online casino.
On 27th October, Netbet became the first online casino to accept Bitcoin gambling using Paysafe or Neteller as a payment broker. It will be interesting to see if it catches on, read more about Netbet and Bitcoin and why Netbet decided to take the plunge.
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Disclaimer: This article only represents the author’s opinion and should not be taken as investment advice.