Stallman warns about Bitcoin peril

Richard Stallman, president of the Free Software Foundation warned that there needs to be a new form of electronic currency which is protected from NSA spy agency data mining.

According to RT Stallman told a London gathering of Bit coin fans that while Bitcoin has its benefits, it is not up to the standard of a safe digital currency that would shield a payer from being tracked by companies and, ultimately, by intelligence agencies.

He said that an anonymous payment system is also required for us to start “taking control of our digital lives”.

He said that Bitcoin’s problem is that it might get used for tax evasion. But he said that some of the biggest problems of tax dodging are legal and if governments want to put an end to tax dodging, tax laws need to be changed so that businesses can’t offshore their profits.

But he said that the biggest problem with Bitcoin is that it is not anonymous. People do not necessarily give their names when they do Bitcoin transactions, but the government can probably figure it out.

You can only get Bitcoins if you set up a Bitcoin money computer, which is how Bitcoins are made, you are going to get them by buying them from someone. If you are an ordinary person, the way you could do it is by paying with a credit card to a company that will exchange government currency for Bitcoins. The credit card identifies you, so when you get Bitcoins in return, the government can see who you are.

He said that there is only going to be real democracy when a government cannot see who is doing what.