There has been a great deal of attention by the media encompassing Bitcoins and other digital money. While the majority of the news has been paying attention to the remarkable rise in the worth of Bitcoins or predicting the best time to trade Bitcoin or change perfect money to bitcoin, there are those that look at several of the implications of this digital financial occurrence to the Family Law.
Many would ask this question, What is cryptocurrency?
A cryptocurrency, as defined by many, is a digital or virtual currency wherein codes are encrypted to control the production of units and validate the transmission of funds. These cryptocurrencies are decentralized which means they are independently operational not needing a central bank.
What are the some of the major pluses of cryptocurrencies?
- There is liberty of movement. In general, it is feasible to give and take or buy and sell cryptocurrencies anytime and anywhere in the world with no constraint and restrictions by financial firms like banks or manipulation by the government.
- There is a possibility of reduced fees. As a result of the nonexistence of involvement of third parties or middlemen, transfers or procurements via cryptocurrencies can possibly be inexpensive than global transfers or procurements by means of the usual currencies.
- The identity of the individual or user of a cryptocurrency can stay unknown. Individuals who possess and spend these digital currencies for instance Bitcoins can go into dealings or transactions wherein their identities are kept.
Can this have an impact on Family Law cases?
Since cryptocurrencies are anonymous by design of and the effortlessness in which they can be transmitted, cryptocurrencies can possibly permit parties to withhold their assets from their previous significant other. This may happen for the reason that digital currencies can be concealed without difficulty as compared to assets deposited in a bank. Additionally, cryptocurrencies are not bound to a specific user or account. Instead, cryptocurrencies are stashed in a digital wallet in the same manner that traditional cash is.
The minute an asset is traded for a unit of digital currency like Bitcoin or as soon as a Bitcoin is bought, the proprietorship of that Bitcoin can be kept confidential moving forward. Hence, parties are supposedly able to draw off assets into cryptocurrencies which would subsequently be very hard to trace with no permission of the individual.