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Hayek contributions give a forward push to Bitcoin

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August 21, 2013

In an article published by CNBC, Frank Schaeffler, a member of the German parliament’s Finance Committee, is quoted as saying: “We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction.”

It takes time for ideas to turn into policy, Hayek wrote “The Denationalization of Money” in 1976, when price inflation was damaging economies across the globe.

“Virtual currency bitcoin has been recognized by the German Finance Ministry as a “unit of account”, meaning it is can be used for tax and trading purposes in the country.  Bitcoin is not classified as e-money or a foreign currency, the Finance Ministry said in a statement, but is rather a financial instrument under German banking rules. It is more akin to “private money” that can be used in “multilateral clearing circles”, the Ministry said.”  For more read the article here:  http://www.cnbc.com/id/100971898