One of the key messages I took away from TED Global 2014 was that virtual currencies (such as Bitcoin) are a reality, and it is only a matter of time - as little as 5 years, according to some people - before we'd all be using these currencies. The application of virtual currencies to the transfer of money across places and countries seems very promising as it could be nearly costless and instantaneous. Yet I feel that regulators are not prepared for such innovation in the field of cross-border remittances, in part, because they have not had the time to familiarize themselves with these instruments, and in part, also because the implications of virtual currencies for the formulation and implementation of monetary and exchange rate policies are yet to be examined.
So when I came across a series of Q&A style explanations from Faisal Khan, through Linkedin, I thought it would be useful to post it on this blog, to begin a new series of discussion on virtual currencies.
You can access Faisal's write-up here.