Cryptocurrency Question

[bookslover]

This is probably a naive question, but:

Since, per the Constitution, only the federal government can authorize and print money, doesn't that automatically make all of these cryptocurrencies (Bitcoin, etc.) illegal?

 

[Logan]

I'm not an expert in constitutional law but as I understand it, the constitution grants the Federal government "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;"

And simultaneously restricts powers on the states "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;"

Article 1, sections 8 and 10.

But note that this doesn't say "only the federal government can authorize" as you have stated it, it only restricts "states". I'm sure you recall that historically banks issued their own bank notes (perhaps a grey area) and the federal government didn't start printing currency until 1862. But it looks to me like there is nothing to restrict individuals, organizations, etc. from coining or printing (or digitally generating) their own money. I do find it very interesting and would enjoy hearing from someone more knowledgeable.

 

[Edward]

Since, per the Constitution, only the federal government can authorize and print money

That isn't what it says.

"To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"

"To provide for the Punishment of counterfeiting the Securities and current Coin of the United States"

The current paper money isn't issued by the U.S. Treasury -- It's issued by the Federal Reserve. Prior to that, banks issued paper currency.

The last president to make a serious run at having the government issue coinage with real value was JFK, and we all know what happened to him.

I consider Bitcoin to be a fool's game (although a useful tool for criminals) but not on Constitutional grounds.

 

[alexandermsmith]

Cryptocurrency probably is the future but not there yet.

 

[bookslover]

"To coin Money, regulate the Value thereof

That is what it says. You just quoted it yourself. The Constitution gives the federal government the right to coin money and regulate its value.

 

[Edward]

print money

coin money

There is a difference.

 

[SeanPatrickCornell]

Indeed. Below is how it seems to me:

If some company in the jurisdiction of the US Federal Government started coining silver or gold pieces there would be a serious problem.

But paper currency, cryptocurrency, etc. are all basically glorified coupons.

The only difference is that coupons that say "Federal Reserve Note" are required to be accepted by everyone at their face value.

No one is required to accept Bitcoin at any value.