Bitcoin-Central, originally a virtual cash exchange center is now a fully pledged bank. Thanks to a successful transaction with France-based financial firms Credit Mutual and Aqoba, Bitcoin Central is now at par with Paypal, WorldPay and other online payment networks. The website utilizes bitcoin as their legal tender, defined in the domain as a “peer to peer digital currency”.
New Features for Bitcoin-Central Users
As a bank, Bitcoin-Central can start issuing debit cards to their account holders. They can also accept money as well as send money to other banks covered in their system. With this development, the computer generated currency bitcoin can easily be swapped for real-world currencies across various banks not just within Europe but spanning the globe.
Bitcoin promises that soon enough, each Bitcoin account will have an IBAN number. This makes it possible for account holders to accept payments or send them out. The user can also have the transferred cash immediately converted into bitcoin if they wish.
Legalities Backing Up Bitcoin
Started during 2009, bitcoins were originally “mined” by users who actively participated within the network. The virtual currency got so widely used that web stores started providing bitcoin options for payment.
As a Payment Service Provider or PSP, Bitcoin Central gains not only an International Bank ID Number but also protection under the European Laws. According to Vitalik Buterin, Bitcoin magazine’s technical editor, any deposits made at Bitcoin Central will be given the same treatment as balances held in accepted banks. Unfortunately, this protection is not applicable to the bitcoin balance but rather, to the separate euro account in Bitcoin-Central.
All users will be protected by the “Garantie Des Depots”, a French warranty at par with that of the FDIC. Under this protection, users will have insurance for their deposit of no more than 100,000 Euro.
Right now, each bitcoin is worth around $13 or £8. With this latest development, there’s a strong chance that many online stores will start accepting bitcoins as payment. As more governments and banks become willing to transact using bitcoin, more online ventures will be comfortable with accepting payment through this virtual cash, says Buterin. Direct access to more banking networks are still underway with further announcements to be made soon. Corporations are also welcome to talk with Bitcoin-Central if they want to start accepting bitcoin for their financial transactions. For more information and updates about this, check out bitcoin-central.net.