Bitcoin is one of the first technologies that has emerged to make it possible for a nation to move money from person to person without needing to rely on banks or other intermediaries.
But as the technology’s use expands, it’s also attracting new challenges and potential problems.
And in the digital world, that means that governments are starting to look at ways to regulate it.
The Federal Reserve is set to issue a report this month on the emerging technologies that could be used to regulate virtual currencies, or virtual currencies that are not backed by a real currency.
The first step will be to find a way to make money that is backed by physical currency, such as dollars, euros, and yen, and not just digital tokens, which can be traded anonymously and are used to buy goods and services.
The Fed is also looking at ways for companies to make a profit by selling virtual currencies in the virtual world.
Some companies are already experimenting with selling virtual goods to consumers, and others are developing new products that use virtual currency as a means of payment.
The technology could become even more disruptive as the number of people willing to buy digital goods grows.
The technology has been hailed as a great way to move from person-to-person payments to more digital transactions.
It can be used in places like grocery stores, online shopping, and taxi rides, but it also can be bought on websites like eBay or Amazon.
The Internet of Things, the term for digital devices, has been touted as the next big innovation that will disrupt traditional industries.
“The more we understand these new technologies, the more we’ll be able to understand how they work,” said Michael Gartenberg, chief executive of venture capital firm Andreessen Horowitz.
But there are also some challenges that the technology presents to governments.
The new technologies could be exploited by criminals to launder money, for example.
And if they can’t be trusted, it could be difficult to track their movements, making it harder to detect fraud.
As governments seek to limit the use of virtual currencies as a form of financial settlement, the technology has also been criticized for being too speculative.
Some have said it could lead to the rise of digital money that isn’t backed by any currency.
“We don’t want to have a currency where everyone can use it,” said Andrew W. Mellon, a former chairman of the Federal Reserve and now a professor at Columbia University.
“We want it to be a tool to facilitate commerce and transactions, not to be used as a currency.
We want to make sure that it’s not used as the tool of exchange.
We’re going to have to take it on the chin.”
Some regulators have also questioned the utility of virtual currency.
The U.S. Securities and Exchange Commission is reviewing whether it should regulate virtual currency and has asked the Treasury Department for guidance on the risks of using virtual currencies.
And last year, the European Union said it was considering regulating virtual currencies because it doesn’t have a clear definition of the term, or any specific requirements.
“There is a lot of confusion about what the terms virtual and virtual currency mean,” said Euan Graham, a spokesman for the EU Commission.
The federal government is looking at a number of ways to protect consumers and address the issues raised by virtual currencies such as money laundering and other types of fraud.
The Federal Reserve’s report is expected to focus on how virtual currencies are being used in the U.K. to buy and sell goods and service.
And a separate report is being prepared by the Federal Deposit Insurance Corp. that will outline the risks posed by virtual currency to banks and other financial institutions.
The Fed will also consider what new technologies and rules can be put in place to protect against these new financial threats.
The White House has also made some public statements on virtual currencies including a report on Aug. 31 titled “Virtual Currencies: A Brief History.”
The report will detail the history of virtual coins, virtual currencies like bitcoin, and the technology that makes them possible.
And the White House will release a White House Digital Currency Task Force later this year.
The new report will be released in two parts, the first in mid-September and the second in mid/late October.
The report, to be released online in early October, will include a list of virtual cryptocurrencies that are used in commerce.
The Treasury will also publish a set of guidelines on how the Federal Government will regulate virtual and digital currencies.
The White House also plans to create a Web site that will provide information on the use and value of virtual and real currencies.