Quote from: noobtrader on April 27, 2016, 05:45:22 PM

Quote from: LMGTFY on April 27, 2016, 05:34:19 PM

Quote from: noobtrader on April 27, 2016, 05:25:39 PM

http://qz.com/670708/the-british-government-is-considering-paying-out-research-grants-with-bitcoin/

how come this news doesnt affect bitcoin price in positive way Huh

...

Two words - British banks! Researches receiving grants in BTC are going to encounter problems with it. They're going to need to spend GBP at some point, and they'll need to explain to their bank where the money came from.

The government has been fairly positive about crypto (opportunity for British businesses, enterprise, innovation - the usual reasons). Our banks... not so much. There used to be GBP exchanges (Britcoin, then Intersango, maybe a few others). No more. When I buy BTC via Localbitcoin I usually have to use something like "ebay purchase" as the reference for the seller's bank. I'm not convinced recipients of government grants are going to be comfortable doing that... even if they are, their auditors won't be.

(Behind the scenes British banks are interested in the blockchain. They just don't want us using that nasty magic internet money associated with the blockchain, however).

but surely if Gov paying out research grant with bitcoin, they dont need to explain anything to the bank. its a Gov research grant Huh

Assuming they need to spend some of that grant in GBP, they'll need to exchange BTC for GBP. It's the GBP hitting the bank that they'll need to explain - if the GBP comes from an exchange, it'll potentially raise a red-flag. I assume a cheque or transfer from a government funding body would go through without a second thought, like any other non-BTC-related deposit.

On the other hand, a government endorsement like this might be the push British banks need to stop dicking around.

@Mrpumperitis - that is good news (and good news for BTC-friendly researchers, too!). Weren't Barclays setting up a blockchain research lab or similar? They've gone up in my estimation. I might have a word with my local branch about BTC...