Look, the government wants to understand how Bitcoin works so that it can crush it (which it looks like it can not,) co-opt it, or replace it with a government sponsored version of Bitcoin. The government and central banks are deeply concerned that Bitcoin will undermine the worldwide central bank system. If they could kill it they would have at this point. But they can’t.
Now they are desperately trying to use the antiquated tools at their disposal to make the innovators spill the beans so the old government and banking establishment can gather them up.
My bet is that we are too far down the line. Governments had better get used to free currencies. This is just the beginning. Forbes.com is reporting this stuff now. It’s mainstream.
Things are getting serious for Bitcoin this month: a federal judge declared it real money, Bloomberg gave it an experimental ticker(XBT), and New York’s financial regulator announced an interest in regulating it. Declaring Bitcoin “a virtual Wild West for narcotraffickers and other criminals,” the New York State Department of Financial Services is stepping into the sheriff’s boots.
“We believe that – for a number of reasons – putting in place appropriate regulatory safeguards for virtual currencies will be beneficial to the long-term strength of the virtual currency industry,” said NYSDFS superintendent Benjamin Lawsky in a statement.
This is code for – we are losing money hand over fist. How dare these Bitcoin guys mess with our cartel.