MasterCard Requests Regulation Break Bitcoin

In response to the UK Treasury’s call for information on digital currencies last November, MasterCard has submitted a letter in which asks for more regulation of cryptocurrencies. From the original text:

We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies does not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks.

Additionally, while digital currency transaction costs are currently lower, this is because providers of digital currency services do not currently bear any compliance costs, whereas providers of other forms of electronic payment bear the cost of complying with consumer protection laws and anti-money laundering laws.

It seems that more and more financial companies has starting to take the threat Bitcoin poses to them seriously to the point they need to respond to it. The substance of the letter, however, fails to address the most basic strengths of Bitcoin or mischaracterizes them as flaws such as: a transaction in the Bitcoin network is irreversible and unstoppable going directly to its destination without potential interdiction by third-party agents while the issuance of the precious few remaining new coins is like the rest of the network subject to the inviolate control of mathematics.

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