Is the world heading to a global Bitcoin currency?

The only debate about Bitcoin is whether it is a currency or a commodity. You can buy it, like a commodity, but you can also buy goods with it, like a currency.

For us, taking Bitcoin at the shop is a way of supporting what we believe is a fantastic piece of technology for the world.

One of the main reasons I believe in it so much is for the remittance market. If you want to send £100 from the UK to Africa, using an exchange company like Western Union, they would take anything up to £30. But Bitcoin is absolutely free.

If you pay for something using an online payment company like Paypal, they take a fee and they keep all your details. Bitcoin is completely de-centralised in the way file sharing and music is.

We will save money on transactions fees and we will pass the saving on, we would rather take £5 on Bitcoin than £5 on Visa.

• James Morris, co-owner of JimBob’s Baguettes

No government controls it, it is all controlled by maths and that is all part of the fun, seeing how this thing is spreading across the world, and seeing how much help it could be to everyone.

No one can print any more, like the Government printing an extra billion pounds for quantitative easing – their production is completely controlled by a formula.

Look at all the other problems there are in regular financial industry, every currency in the world has had problems.

But, unlike other currencies, I can hold all my Bitcoins myself. It gives me control over my own money. And more businesses are taking it all the time. The Bitcoin community is really friendly, everyone wants to take it forward.

We have already been contacted by a few people on Facebook and Twitter saying they will come down.

The Pembury Tavern in Hackney, which was the first business in the UK to take Bitcoin, has Bitcoin meet-ups so hopefully that’s something we might be able to get involved in.

Oxford, with the higher level of intellectual students, is the right place for this.

There is more chance that people might have heard about it before and get involved at an early stage. It is more likely to do well here than a lot of other places.

Most people pay with Bitcoin using a method called Bitpay, where you can immediately convert it to pounds, but we are going to keep it in Bitcoin and have it go up or down and see how it does.

We’re not expecting to take thousands of pounds in Bitcoin, but we will see how it goes.

NO: Fran Kidd, business development manager at Oxford accountants Critchleys LLP accountants

Bitcoin is seen as the world’s first decentralised digital currency, otherwise known as a cryptocurrency.

The popularity of Bitcoins in the online environment and the subsequent over-the-counter adoption by a handful of big brand names has led to speculation around the fact that we may be heading to a single global currency system.

Concerns around Bitcoin use have predominately focussed on the dangers of online transactions, including criminal behaviour or trading due to the potential for anonymous transactions.

• Fran Kidd, business development manager at Oxford accountants Critchleys LLP accountants

The European Banking Authority has warned that Bitcoins lack consumer protection because Bitcoin issuers and software or hardware owners are privately-owned companies. This means that traditional financial sector regulation is not applicable and there is no liability protection available so, if Bitcoin wallets or other funds are hacked online, consumers are not protected.

Bitcoins are price-volatile due to the uncertainty of their longer-term value. Although this wouldn’t necessarily apply to JimBob’s Baguettes, businesses accepting Bitcoins over the counter (especially those retailing high-ticket goods) will need to establish clear policies in relation to returns and refunds to ensure that the original price is refunded to the consumer rather than the market value of the Bitcoin at the point of refund.

There are possible issues around the retailer being defrauded where Bitcoins are “double spent” as confirming a transaction can currently take around 10 minutes to process. This has led to some retailers taking a risk on unconfirmed transactions where speed of sale is of the essence.

Tax treatment of Bitcoins is of concern due to the potential for the value to appreciate or depreciate rapidly, in the US for example, the IRS have declared that Bitcoins should be treated as property rather than currency which means that appreciation in value may mean that the holder of a Bitcoin is liable for Capital Gains Tax when exchanging for goods.

In the UK, HMRC issued a brief which states that tax treatment in relation to profit or allowable losses will be judged on a case-by-case basis, in other words “watch this space”.
In conclusion, the fact that governments, legal regulators and tax authorities are struggling to come to terms with cryptocurrency suggests that it may be too early to adopt the Bitcoin on the high street.

However, as a marketer I recognise that having a point of differentiation is important for new businesses to make their mark and ultimately survive therefore, the best of luck to JimBob’s.