The use of virtual currencies to buy goods and services online is a growing field of law, as are their potential applications for illegal activities.
A law firm has created a digital currency called ‘Euroracoin’ which can be used as payment for legal purchases, and it was recently approved by the European Union (EU).
However, the EU’s virtual currency legislation is not set to take effect until 2019.
“Eurorracoin is intended to be a currency and not a payment instrument for illegal conduct,” the law firm’s website says.
“The EURORACOIN is a new digital currency, which is designed to be used for legal transactions and which can only be used by authorised persons in accordance with the relevant laws.”
“The aim of the EURORAOIN has been to make it possible to use this new digital payment instrument as a form of virtual currency for lawful transactions, for example for buying goods and/or services online, or for providing legal services to others.
The EUROROIN will be a virtual currency which is not a currency, and therefore does not require a physical form of money.”
Virtual currencies are increasingly being used to pay for goods and other services in virtual currencies such as bitcoin and litecoin.
“We believe that this new virtual currency will be beneficial to all stakeholders and to be part of the European legal framework,” the firm says.
In the EU, the virtual currency law has yet to be published, but a recent EU regulation was recently published that makes it possible for legal entities to set up virtual currencies.
However, there are legal obstacles to using virtual currencies in the EU.
For instance, the country where virtual currencies are being used is not yet recognised as a Member State, meaning that virtual currencies can be only used there.
“However, this may change in time,” the European Commission says.
The EC’s virtual currencies legislation is set to become effective from 1 July 2019.