2009-06-29

Digital Currency Trading Declared Illegal in China

Virtual Currencies threaten the power of governments by weakening their grip over the medium of exchange - ie Fiat Currency. In that sense, it is not surprising to see one of the more Authoritarian States definitively cracking down on Virtual Currency exchange. In practise, this will lessen the booming virtual currencies business and put many Chinese "gold farmers" out of work, but generally drive the digital currency market to ever higher levels of sophistication and security.

We have touched on this issue before.

An exposition on the topic of secure digital currencies can be found in David Friedman's Future Imperfect.

We suspect that the collapse of the value of the private US Federal Reserve Dollar will spark a real push for legalisation of competing Commodity backed digital currencies.

1 comment:

emmalineyodis said...

Foreign currency traders have been anticipating a revaluation of the Iqd for 7 years. The Iraqi Dinar is anticipated to be revalued along the identical foundation that the Kuwaiti dinar was revalued after the first Gulf War. At that time, the Kuwaiti Dinar plunged from its pre conflict levels. When oil manufacturing recommenced. The foreign currency recovered all its original worth. Speculators holding the Kuwaiti dinar on the time saw profits of over 3000% on their cash. This higher expected profit has shaped enormous expectations that on the revaluation of the Iraqi dinar and lots of persons are hoping that this will probably be an investment with an extremely high profit.