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Commodity Based Digital Currency: A Legal Analysis
Abstract
Financial innovations bring new challenges and new risks besides advantages to the world of finance in cyberspace and in the real world. These innovations evolve alongside the development of cyberspace creating more e-business opportunities. One such innovation is digital currency. As cyberspace develops, this financial innovation allows more and more players into a formerly closed market of providing a medium of intrinsic purchasing power which was generally supplied by a nation’s central bank in the form of money. What, then, is the legal status of this digital currency in a nation?
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