As financial regulations increase by the day, so do the ways around them. The most radical yet is the virtual currency known as the Bitcoin. Instead of real money, virtual cash is stored in an online wallet lodged in the hard drive of a computer.
Created four years ago by an anonymous computer scientist – or possibly a group – using the pseudonym Satoshi Nakamoto, the Bitcoin was conceived as a way of transferring money outside traditional banking systems, thus circumventing regulatory controls.
The Bitcoin has become so popular – its share price spiked at $1,240 this year – that even JP Morgan is getting in on the act and setting up a rival, patented computerised payment system which, like the Bitcoin, ensures account holders’ names and account information cannot be disclosed.