Digital currency is here to stay\u2026but just what defines \u201cdigital currency?\u201d<\/p>\n
Wikipedia defines digital currency<\/a> as \u201c\u2026a form of virtual currency or medium or exchange that is electronically created and stored.\u00a0 Some digital currencies are crypto currencies, for example bitcoin.\u201d<\/p>\n Just this week, an article in CNNMoney<\/a> reported that \u201cBitcoin enthusiasts may soon be able to use the digital currency to support political campaigns.\u201d\u00a0 The Federal Election Commission (FEC) had been set to rule on the use of bitcoin to support political campaigns on Wednesday, however, the FEC delayed their decision.\u00a0 Citing concerns regarding bitcoin\u2019s anonymity, FEC Commissioner Ellen Weintraub pushed back a ruling until the FEC\u2019s next open meeting<\/a>.<\/p>\n Although bitcoin may be viewed as the digital currency of the Internet, the IRS considers it a commodity rather than a form of currency.\u00a0 We can\u2019t hold it in our hands or use it to fill up our cars with gas or walk into a convenience store to purchase a drink.<\/p>\n If the bitcoin wallet company Xapo has its way, however, all of that is about to change. This week, Xapo announced<\/a> that \u201cit is two months away from introducing the first debit card that will let you spend your bitcoins at any place that takes Visa or MasterCard.\u201d\u00a0 A huge step forward and a sign of bitcoin\u2019s growing popularity.<\/p>\n Bitcoin users today need to scan a QR code with their phone or email a lengthy bitcoin address to a seller in order to purchase items.\u00a0 It\u2019s easier to swipe a credit or debit card and be done with the transaction.\u00a0 But Xapo hopes to change all that by linking online bitcoin wallets to their new debit card.<\/p>\n In addition, Xapo is \u201cin the process of becoming a debit card issuer on one of the major credit card networks.\u201d <\/a>What this means is that Xapo will be able to issue individual debit card numbers as well as expiration dates for free.\u00a0 If you want an actual card for purchasing routine items such as gas or groceries, Xapo will be able to issue a plastic card for $15.<\/p>\n And just like a \u201creal\u201d debit card, when the Xapo debit card is used, the \u201c\u2026number checks in with Xapo, which approves or declines the transaction, depending on how much bitcoin you have in your wallet.\u00a0 It then sells the bitcoin on the Bitstamp Exchange and pays out the merchants just like any other card issuer.\u201d<\/p>\n If you\u2019re interested in signing up for the card or finding out more information, check out Xapo\u2019s website at https:\/\/xapo.com\/#home<\/a>.<\/p>\n But even as bitcoin continues to gain in popularity, a group of experts told CNBC<\/a> this week \u201cthe world already has a digital currency\u2026the U.S. dollar.\u201d\u00a0 Many of those experts argue \u201c\u2026that the USD possesses many of the strengths associated with bitcoin.\u201d<\/p>\n One expert, ConvergEx\u2019s Chief Market Strategist Nicholas Colas<\/a>, said \u201cThe $100 bill is the world\u2019s bitcoin.\u00a0 It\u2019s anonymous.\u00a0 It\u2019s easy to use.\u00a0 It\u2019s actually easier than bitcoin because you don\u2019t need a computer of even power.\u201d<\/p>\n And Christopher Vecchio<\/a>, a currency analyst for the DailyFX<\/a>, believes that for many merchants, \u201c\u2026money is already digital.\u201d<\/p>\n \u201cThe bank isn\u2019t holding a lot of money in there. The money in your account is data. It\u2019s a set of zeroes and ones.\u201d<\/p>\n Vecchio believes \u201c\u2026bitcoin\u2019s role in reducing transaction costs is noteworthy, but this shift is part of a broader evolution in use of money worldwide.\u00a0 The future of money will really be on finding ways to transact in a lower-cost way, and that\u2019s a societal trend, not just bitcoin.\u201d<\/p>\n