Steve Stockman's acceptance of bitcoins moves debate over online currency to politics
WASHINGTON — Questions about the digital money bitcoin — what it is, how it’s used and whether governments should regulate it — have popped up in business and banking circles ever since the digital money was first proposed in 2009.
Since then, about 12 million of the virtual coins have entered circulation and a growing number of businesses in the U.S. and globally accept them as payment. And now, Rep. Steve Stockman, R-Friendswood, is hoping to spread bitcoins’ use to politics.
Stockman announced this week that his campaign against Sen. John Cornyn will accept donations of bitcoins. It’s legal to do so, but it means he’ll get contributions in a form of currency with no tie to any bank and that he can’t see, touch or spend at most Texas businesses.
The decision isn’t likely to yield a windfall that will help Stockman keep pace with Cornyn, a two-term incumbent who is the No. 2 Republican in the Senate, in fundraising. But it reinforces his message and appeals to his base supporters’ distrust of the Federal Reserve system and highlights an issue that could be a challenge for regulators as bitcoins catch on.
More at http://www.dallasnews.com/news/local-news/20140102-steve-stockman-s-acceptance-of-bitcoins-moves-debate-over-online-currency-to-politics.ece .
Cross-posted in Texas Group.
