Of Bitcoins and Corporations

Professor Stephen Bainbridge raises the issue of whether the use of Bitcoin and other e-currencies violates the Delaware General Corporation Law (as others have argued that it violates California's corporate statute).

Bitcoin is a digital currency created in 2008 as a peer-to-peer electronic cash system.  Information about Bitcoins can be found on the currency's website and in this Adrienne Jeffries's very comprehensive piece in The Verge. [NOTE: NEITHER BUSINESSLAWBASICS.COM OR ITS BLOGGERS, OR BERGER HARRIS OR ANY OF ITS ATTORNEYS, ADVOCATES, RECOMMENDS, OR OTHERWISE ENDORSES THE USE OF BITCOINS].  Bitcoins are accepted as currency by many merchants around the world.  The financial viability of the system, however, has been called into question by a number of economists and business analysts.  Moreover, because of the general difficulty in tracing bitcoins, and the potential to use them for illegal purposes (or to circumvent tax or disclosure laws), Bitcoins have come under intense government scrutiny.