Law360, New York (July 31, 2014, 10:21 AM ET)
Virtual currencies or cryptocurrencies (led by Bitcoin) (“BTC” will be used collectively for Bitcoin as well as the other cryptocurrencies) have experienced a tremendous growth in popularity. Until recently, very few people had heard of them, much less used them. But their development, with all of its benefits, as well as issues, has been remarkable and continues transforming the financial landscape.
However, BTC operates outside of the banking system and is still not recognized as currency by states and governments.
Accordingly, it is yet to be widely accepted by the various players involved in domestic and international commerce.
International arbitration, now very commonly used and respected, originated under similar circumstances. Thus, I believe that BTC has a lot to learn from international arbitration.
Let’s start from the beginning. What is Bitcoin?