Last updated on May 6th, 2013 at 05:28 pm
It’s China’s fault if we’re talking about this issue. The country provided the idea by pegging their currency to the dollar at a cheap rate and becoming the second biggest economy in the entire world. So, taking this example, what would happen if you pegged Bitcoin’s price to the North-American currency? Could this be a solution to all Bitcoin’s problems?
Like China, this solution could boost Bitcoin and impose some rules to its value. This decision would be able to change the volatility that affects the digital currency, making users and merchants more safe and comfortable with the “coin”. A fixed rate can do wonders, when all you have is instability.
Pegging Bitcoin’s value to the US dollar would also create a possible alternative to the regulator FinCEN situation. This problem started when three Bitcoin exchanges in the United States were shut down, “apparently as a result of guidance issued last month by the Financial Crimes Enforcement Network”, wrote John Matonis, in Forbes.
Can this be the solution that will allow Bitcoin to work away from the scared competitors’ eyes, using cryptology? This fixed exchange rate could even be managed by the Bitcoin Foundation, which would be responsible for the daily publication of the fixed rate.
This could be a solution, but probably just a temporary one. Who knows? Maybe one day, when Bitcoin and its lobby turn up really big and powerful, they will be able to impose decisions to governments.