| Virtual currency, also known as cryptocurrency is a currency that exists in electronic form. It relies on a peer-to-peer network and does not have any central authority. There is no tangible paper or coin that is held. Instead, it is an account with digital stored value that can be used to buy and sell commerce. It is also commonly used in the virtual gaming world. Recently, digital currency is seen emerging as a payment system in competition with fiat currency. Bitcoin, the most popular cryptocurrency is a worldwide currency of the internet. It is a digital, open source peer-to-peer, decentralized anonymous cryptocurrency. Bitcoin was created in 2009 by a programmer alias, Satoshi Nakamoto. Transactions are made with no middle men. It is between two parties and their identities are not revealed.;There is a growing trend in the cyber world that is pointing towards acceptance of this new form of currency. However, governments are being cautious and have not accepted this as a legitimate currency. Key concerns include the anonymity of its users, and the lack of regulations governing this form of medium. The anonymity of Bitcoin and its transactions makes it a prime currency for illegal use. U.S. Treasury anti-money-laundering units are warning businesses that are linked to bitcoin that they could become money transmitters and thus must comply with federal law and regulations. However, governments also recognize the popularity in this form of payment and are trying to provide guidelines and construct regulations for this emerging currency. This capstone will explore the potential of the digital currency and the obstacles associated in a decentralized, anonymous and uncontrolled currency.;Keywords: Economic Crime Management, Bitcoin, Virtual Money Laundering, Coinjoin and Tumbler. |
