In the past week, two important news stories surfaced involving Bitcoin, some of the world’s biggest banks, and government finance agencies which leads us to believe the digital currency is about to be slowly adopted into the daily routine of the banking and trading fields.
In an announcement on its website, the US Commodity Futures Trading Commission (CFTC) has officially recognized “Bitcoin and other virtual currencies [as] a commodity covered by the commodity exchange act.”
This decision came after the commission and the FBI carried out an investigation into the activities of Coinflip, Inc., a company operating Derivabit, a platform which allowed users to easily buy and sell Bitcoin.
The CFTC made the announcement on September 17, and by the next day Conflip and the FBI had reached a legal settlement, after the CFTC and the Bureau accused it of “operating a facility for the trading or processing of commodity options without complying with the CEA or CFTC Regulations.”
The biggest banks in the world are looking into Bitcoin blockchain technology
But the biggest news regarding Bitcoin came Tuesday, September 15, when Reuters broke a story announcing a collaboration between some of the world’s nine largest banks, which were actively looking into blockchain technology, the base tech which runs all the Bitcoin cryptocurrency variants.
Blockchain, an encrypted database of all Bitcoin transactions distributed across multiple machines, is what makes Bitcoin such a secure, unhackable system.
By involving everyone that has a machine inserted in the blockchain in the verification of Bitcoin transactions, it is extremely difficult, near impossible, to execute fake or fraudulent exchanges.
This high level of security is what attracted the banks, which besides wanting a piece of the Bitcoin pie, said that blockchain technology could also be used for exchanging other types of