Abstract:
There are still many uncertainties with regard to whether virtual currencies will eventually replace fiat money or whether these two institutions will be functioning in tandem. Virtual currencies are still without legal tender status, but it is established that virtual currency can be utilised as a medium of exchange in circumstances where parties permit for its use. Moreover, this novel technological phenomenon engenders a myriad of risks and legal implications that are not comprehensively dealt with by regulators either locally or internationally. This dissertation investigates the risks associated with virtual currencies, the regulatory approaches taken by different jurisdictions as well as the prospects for virtual currency to function as a medium of exchange.
