A Regulatory and Economic Perplexity: Bitcoin Needs Just a Bit of Regulation


The use of Bitcoin as an alternative to traditional “flat” currency is “unnerving precisely because a world where it is used for all transactions is one where the ability of a central bank to guide the economy is destroyed, by design.” Bitcoin, the first decentralized digital currency, is a peer-to-peer payment system that allows international transactions to take place at any hour and in any place for very low cost. This Note analyzes Bitcoin and ultimately proposes a short-term solution to Bitcoin’s regulatory uncertainty that aims to strike a balance between the government’s interest in regulation and Bitcoin’s rejection of central authority – a loosely defined legal framework that operates with a minimal degree of governmental intervention.


Bitcoin, currency regulation



Daniela Sonderegger (Washington University School of Law)



Publication details



All rights reserved

Peer Review

This article has not been peer reviewed.

File Checksums (MD5)

  • pdf: f63285a82baf90d5183fa2cd37fb4132