Published: Wednesday September 17, 2014
The central bank of Bangladesh’s decision to make the use of Bitcoin a punishable offence is an extreme measure.
The government has taken a zero tolerance approach to the currency, with offenders facing jail terms of up to 12 years. Such a tough stance follows similar moves from Ecuador and Bolivia, which have both banned the currency, and China, which has severely restricted the use of Bitcoin across the country.
However, with appropriate controls and procedures, like those administered in the UK, Bitcoin and other crytocurrencies really shouldn’t be treated any differently to other fiat currencies. There is a lot of fear that wrongly surrounds this currency.
Decisions like this one demonstrate the need for cryptocurrencies to be regulated in line with traditional methods for traditional currencies to help chase away those fears. Only then can trust be built in cryptocurrencies and the sooner we trust them, the sooner the benefits of cryptocurrencies can be brought to the world.