3 Jan 2015

UK MP's Statement On Bitcoin

The UK House of Commons has debated for the first time since 1844, the matter of money creation, and to expand it further, the matter of regulating Bitcoin in the United Kingdom. The topic was brought about by the MP Steve Baker, the recent elect to the Treasury Select Committee, the committee which monitors the UK treasury. Baker, a Bitcoin user himself, recommended that the government do not create new regulations for the said cryptocurrency and other altcoins, but instead that they consider the possibilities of regulating cryptocurrencies under the current law. Baker, a distinguished member of the House of Commons, has a very good track record which gives him the position to debate upon the subject of regulating Bitcoin in the United Kingdom. He completed a Masters degree in computers in Oxford, and has worked in many IT based jobs, the most notable of which is service for the Lehman Brothers, a distinguished company. He was later elected MP of Wycombe in May and was chosen in the Select Committee later after that. Baker believes that the world of innovation should not be tarnished by interruptions from the governments, and that the statement holds as long as the innovation or the development going on is legal, and as anyone can see, Bitcoin is legal. He also pointed out that the UK government is actually having a positive outlook towards Bitcoin and is very interested in cryptocurrencies as well. Baker believes firmly that new laws do not need to be made and also has quite a good justification for taking this kind of stance. He said that cryptocurrencies are just tools, one can do whatever they wish to do with them, just like money can be used for illicit purposes, then so can Bitcoin. Since the similarities between regular money and Bitcoin are of a big number, he believes that the existing laws can be molded to form regulations for cryptocurrencies as well. He says that cryptocurrencies are available to a limited number of people willing to take risks, so let the government not hinder them in their use of the online currency. Now you may think why is Bitcoin still limited to a group willing to take risks. Here is why. The way you have to buy Bitcoin from exchanges and the instability in its price is the reason people don’t want to get into the field. Baker explained the process as being cumbersome. To buy Bitcoin, he had to open a currency trading account, buy Euros for the same and wire the amount to the exchange that he used (Kraken) to get the amount in Bitcoin. He also lost around €250 due to the instability of the price over the passage of time. He also pointed out that he didn’t deal in the black markets as well. Baker said that although the price of Bitcoin is very unstable, the transaction security and the payment system are really good. He also speculated that within a certain amount of time, Bitcoin prices might stabilize, and we would be spending cryptocurrencies without apprehension, which is a pleasant thought. Overall, the UK government has been positive about cryptocurrencies, so we can expect more exciting developments and good news for Bitcoin from this region of the world.


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