Bitcoin wallet identifier / Dogecoin hashrate wallet

“Considering the definition of an official currency as set out in law, it’s not that. It’s also not a payment instrument, because the law stipulates that a payment instrument must have an issuer responsible for its operation, ” Paeivi Heikkinen, head of oversight at the Bank of Finland in Helsinki, said in a Jan. 16 phone interview. “At this stage it’s more comparable to a commodity.”

Finland is the latest country to try to come to grips with the advent of virtual currencies that aren’t controlled by any central bank or government. As regulators in Europe warn of the risks associated with using such software as a substitute for real money, authorities are struggling to design frameworks to protect consumers and businesses from potential losses they have no legal means of recouping.

In the Nordic region, Norway’s government has also decided Bitcoin doesn’t qualify as a currency, while in Denmark the financial watchdog says it’s putting together recommendations for lawmakers on how to treat Bitcoin and its competitors.

Globally, Bitcoin has had a mixed reception, with China’s central bank banning lenders from handling the virtual money. The U.S. Internal Revenue Service hasn’t offered guidance on Bitcoin beyond saying it’s working on the issue and that it has been monitoring digital currencies and transactions since 2007. Meanwhile, Texas Senate candidate Steve Stockman is accepting Bitcoin campaign donations.

Bitcoin ATM

In Finland, a AAA-rated euro member that has tended to side with Germany on most economic policy matters, the response to Bitcoin by the public has been mixed. One in ten Finns is interested in investing in Bitcoin, according to a survey commissioned by stockbroker Nordnet AB from CINT AB. Among Finnish men, interest was higher at 17.2 percent.

Europe’s first automated teller machine for buying Bitcoin was installed at a record store at Helsinki Railway Station last month. To buy Bitcoin, customers key in their Bitcoin-wallet identifier, insert euro bills and virtual currency is transferred digitally to the wallet online.

Binary Outcome

“Bitcoin is likely a multi year, multi decade type of investment, ” Barry Silbert, founder and chief executive officer of SecondMarket Inc., said in an interview on Bloomberg Television today. Silbert said the company’s Bitcoin Investment Trust now has as much as $65 million under management. “The outcome is likely binary: you’re either going to lose all of your money or it’s going to be a fantastic return.”