Bitcoin Central Digital Currency Exchange Approved To Operate As a Bank

Written by Mike Awada on . Posted in Business, Technology

crypto-currency

The popular European Bitcoin exchange, Bitcoin Central, has garnered approval from financial regulators to operate as a bank (PSP) under French law, legitimizing the currency in many circles.

This comes not even a month after respected global publishing platform WordPress announced they’d be accepting Bitcoin as a payment for its sites services.

Here’s a brief background on Bitcoins if you’re unfamiliar with them.

What This Means

Despite some scares in 2011, the crypto-currency seems to have regained it’s footing and today, online Bitcoin exchange site Bitcoin Central announced they have partnered with French payment processor Aqoba and French bank Credit Mutuel, allowing Bitcoin Central to operate as a bank.

Technically, Bitcoin Central has become a Payment Services Provider or PSP. This gives them an International Bank ID number and puts them on the same footing as companies like PayPal. They’re essentially the same as a bank without the ability to issue debt.

Peace of Mind to Businesses

It’s important to note that this is just one Bitcoin exchange offering this service. Anonymity is an inherent trait to Bitcoins, and that will continue in all other forms of Bitcoin currency exchange. The backing of the financial institution Credit Mutuel will give corporations peace of mind if they choose to accept Bitcoins as a form of currency.

Individuals and companies that don’t trust the current Bitcoin system now have a way to safely accept Bitcoin. Any participants will receive an easy outlet to convert between government currencies and Bitcoin, but will they’ll forego their anonymity.

Further Implications

- Users of Bitcoin Central will have their portfolio held at Credit Mutuel under their name.

- Each customer will be protected under the “Garantie des dépôts” which is the French equivalent of the American FDIC, up to € 100,000.

- Users can have their salaries and pensions automatically converted to Bitcoin if they so wish.

- Each user will be able to obtain their own debit card, with balances in both Euros and Bitcoins.

Conclusion

This is a big step forward for Bitcoins; the limited digital currency currently valued at about $13.35. Although they’ve only been around for three years, Bitcoins are gaining notoriety in the public eye seemingly everyday. This will be an interesting story to monitor moving forward.


BitcoinTalk.org

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