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After clashing with regulators and being blacklisted by many banks and credit unions, many emerging-payments companies are seeking a warmer welcome outside the U.S.
December 17 -
Bitcoin has received a lot of attention this year, for all the wrong reasons.
November 21 -
In back-to-back hearings this week, lawmakers acknowledged the promise of virtual currencies like Bitcoin and the risks of overregulation along with the danger of abuse. Laws on the books may suffice to address the latter, for now.
November 20 -
As a fast, low-cost payment system, Bitcoin provides healthy competition for legacy banks. It's also a bulwark for financial privacy and freedom of speech.
November 18
Peter Orszag is personally bearish on Bitcoin but he still can make an economic case for it.
"Personally, I wouldn't be buying Bitcoin right now," Orszag, a former director of the White House's Office of Management and Budget and a current vice chairman of Citigroup (NYSE:C), said during a presentation on Wednesday.
That skepticism might be expected, given that Orszag's
But Orszag prefaced his dismissal with a moderate defense of the digital crypto-currency, which has become popular with everyone from hackers and
"What people don't understand, and I think what's crucial to understand, is that money is anything that people will accept as a medium of [exchange]. So the crucial part of money is, if I want a Diet Coke, I don't want to trade someone a Bloomberg column for a Diet Coke. That would be a very inefficient [system]," Orszag, who also writes for the financial news service's
"There are lots of different things that can work as money. Digital money of the Bitcoin or other forms, it all depends on what people are willing to accept," he added. "So there are regulatory questions, but from an economics perspective, the key question is is this a big network effect? It's only if other people accept it as money that you're willing to accept it as money, and that remains to be seen, in part because so much depends on how everyone responds to that expectation."
Orszag was answering questions during an event hosted by The Atlantic in New York.