What should be the US position in the UN on digital currency? (Economic Topic)

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3 Δεκ 2013 (πριν από 3 χρόνια και 11 μήνες)

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Iowa Youth Symposium on the United Nations

October 2013


What should be the US position in the UN on
d
igital currency
?

(Economic

Topic
)


Topic Background

Monetary systems developed historically
to replace the barter system

with a more
convenient medium of exchange
.
The value of a medium of exchange depend
s
on something
deemed valuable by the culture, region, or country

and it needs to be something that retains
value
.
Many countries originally

circulated coins

made of gold and other precious metals
.
Eventually, they developed metal and paper currency the value of which was

originally
based on
the ability
of the government
of the country to replace the currency with gold.


Economic
problems in the last
decade
have brought into question the validity and stability of the value of
currency in many countries.

Drastic measures have been taken in some parts of the world to prevent further economic
recession. These include restrictions on withdrawals and deposits
,

su
dden devaluations of
deposits
, and banks closing their doors to prevent withdrawals
. Instances such as these have
caused many people to lose faith in the banking system.


Some argue that

global markets are

stifled by
national
monetary systems and exchange

rates
, tariffs and

taxation,
and banking regulations.


Transparency, security, and availability of
personal and business assets are also concerns. Government regulations fail to keep pace with
the legal and illegal transactions of business over the inter
net.

These and other influences have
motivated people

to turn to other methods of financing
and have
inspired the development and use of digital currency.

The concept surfaced in 1996
with the use of e
-
gold. The emergence of Bitcoin in 2009 was the firs
t of several
cryptocurrencies, named to emphasize their reliance on cryptography for security.

The debate
about the present and future role of digital currencies is increasing. While digital currencies are
more popular in Europe, their use is beginning t
o increase in the US.


Questions to Consider

1.

Look up references to Bitcoin, Litecoin,
Opencoin, Cryptocurrency

2.

Is digital currency real?

3.

How will digital currency affect
the world economy?

4.

How will the use of digital currency affect national banking
systems?

5.

What are the advantages of the use of digital currency?

6.

Is it legal to use a digital currency like Bitcoin?

7.

What legal

and illegal

uses are made of digital currency?

8.

Should profits from digital investment and transactions be taxed?

9.

Are investments

in digital currency safe from hackers? Can they be stolen?

10.

Should digital currency be regulated on the national or international level?

11.

Should digital currency be regulated

like banks
? And if so, how?

12.

How many people
take part in the digital currency s
ystem?

Sources of Information

https://bitcoinfoundation.org/

https://litecoin.org/

http://www.bbc.com/capital/story/20130702
-
should
-
you
-
invest
-
in
-
bitcoins


“Does digital currency have staying power?” by Constance Gustke

http://buzz.money.cnn.com/2013/04/18/bitcoin
-
investor/



“I lost $50,000 in Bitcoin crash, but I’m still a believer” by Hibah Yousuf

http://www.bbc.co.uk/ne
ws/technology
-
23150740

http://www.bbc.co.uk/news/business
-
23140904

http://www.ksl.com/?nid=148&sid=25834415

http://www.infoworld.com/t/government/bitcoin
-
miners
-
beware
-
lawmakers
-
are
-
fixating
-
digital
-
currency
-
221387

http://www.dailydot.com/business/digital
-
currency
-
bitcoin
-
litecoin
-
ven
-
webmoney/

http://www.wired.com/magazine/2011/11/mf
_bitcoin/



Disclaimer

UNAFAC,
IYS
, the author of this background guide, and the school that hosts this website do
not advocate investment in digital currency. This information is for research purposes only and
s
hould not be construed as promoting digital currency.