(3 of 4) Why Bitcoin Has To Become Legal Tender In Order To Succeed – By U.S. Lobbyist, Brian Files

This is part 3 of a 4 part interview with professional U.S. lobbyist, Brian Files, about what it takes for bitcoin to succeed from a legal and legislative perspective.

He will also talk about the obstacles and hurdles that bitcoin can potentially face in order to gain mainstream adoption.

Tai Zen:  Some of my colleagues attended the Bitcoin conference in Amsterdam and there was a lot of small banks there researching Bitcoin, the Bitcoin methodology because they don’t have the edge, they don’t have the advantage like the big banks like the JP Morgan Chase.

They’re looking for that advantage and that edge in the market and they were there looking at different banks. Some of my colleagues were approached by European banks, they were approached by Australian banks to learn more about okay, what is this technology, what is this Bitcoin technology, how do we incorporate it.

Brian Files:  Right. If somebody can trade it and make money off trading it just like any other currency just like Pesos or just like Francs…

Tai Zen:  Euros, Pounds…

Brian Files:  Euros, whatever, they can trade it to something tangible and people understand it That’s what I mean by making it real like “green papers” then you have something going.

When Bitcoin is considered something that’s real to the small banks… because the big banks are not going to do it.

It needs to start off as a small grassroots stuff with small banks or maybe you can create a network in a state or a community where it’s a literally considered “tender”.

Then, you’re building that base. You’re going to have enough information then it becomes common knowledge especially if there’s trading margin on it and people can make money from it.

When people make money on something, oh, it’ll be common! LOL!

Tai Zen:  Now, you mentioned legal “tender” just so that the people outside of the U.S. maybe not be familiar with the term tender, right. You’re talking about currency, right.

Brian Files:  I’m talking about currency or ways of anything that is identified as a “legal note”

Tai Zen:   A legal form of currency?

Brian Files:   A legal note that can pay for goods and services. That’s what a “tender” is.

So, an I.O.U (I owe you) is not a form of business tender… it is a written contract that you can actually use. But, I consider a legal tender something that you can use for anyone at anytime.

Tai Zen:  For any product or service?

Brian Files:  Anything like that.

Tai Zen:  Like the US dollar or the Euro or the Franc.

Brian Files:  Correct. Bitcoin has to be translated into some type of tender.

Tai Zen:  Yeah, that you could actually purchase that product or service directly?

Brian Files:  Yeah.

Tai Zen:  Because right now, if you want to get something with Bitcoin, there are still some hurdles because you have to convert it to U.S. dollars or to the Pound or the Euro before you can actually get it.

Brian Files:  Exactly. And I’m not saying that’s uncommon because you got to convert Euros anyways.

Tai Zen:  Yeah.

Brian Files:  But, when it seen as something that’s a common occurrence that you can make margins on it that is not highly volatile like you said it goes up and down.  If it’s highly volatile, nobody wants it.

If you’re sitting there and you can buy bread one day and then the next day you can buy a Cadillac with Bitcoins… that’s not currency!

There’s no stability in that!

Tai Zen:  Yeah, people don’t have faith in it.

Brian Files:  Well, it’s more… that they can’t predict it.

Hey, listen, what is the value of what I have in my pocket? Right now, if you went to the IRS (Internal Revenue Service) and say, “Alright, here’s my tax bill, I’m going to pay them with Bitcoins.”

You go to jail.  LOL!

They’re going to say, it’s not accepted right now as legal tender.

Tai Zen:  They just consider it as property. But it’s funny because the IRS had deemed that you’ve got to pay taxes on it when it increases in value.

Brian Files:  Exactly.

Tai Zen:  So just like if your house increases in value… you have to pay taxes on it when you sell it.

Brian Files:  Right, and that’s actually a federal gap if they’re actually deeming it as a property.

Tai Zen:  Yeah. Does that shock you or does that surprise you that IRS ruled that it was a property?

Brian Files:  Not really because there’s all types of properties, intellectual property, values are up and down, I’m not saying in the property basket. That is not really something transferable.

Tai Zen:  Yeah.

Brian Files:  But, I can’t sell you my property [by staring at you] because once they put it [bitcoin] in the property basket, it puts it in a whole different ball game.

Once they put you [bitcoin] in a tender basket, that’s something that’s transferrable, I can pay for my cab ride, I can pay my mortgage, I can pay my taxes, I can buy bread. I can do everything.

Right now, bitcoin is considered property… although it’s valuable and has value, it’s not transferable.

Tai Zen:  Okay. So right now, one of the biggest hurdles of all the Bitcoin businesses and the Bitcoin related businesses is that they’re not comfortable in setting up the business because they don’t know how the U.S. law makers are going to rule on it and they don’t want to get shutdown so now they’re setting up businesses overseas.

They need some guidance like hey, we set up a Bitcoin exchange or we set up a Bitcoin business, there’s money, there’s anti-money laundering laws that you have and there’s”know your customer” laws.

Brian Files:  Yeah and volatility of the practice.

I mean like I said, the first thing, the only thing I know about it is that it falls apart.

Tai Zen:  Yeah, due to the Mt. Gox exchange.

Brian Files:  Exactly.

So, you don’t have any standard that backs it up like the U.S. monetary system used to have with the gold standard.

You don’t have anything to back up your monetary system.

It’s all electronic… it’s in the air… so I could have a million Bitcoins and it could be worth eight million dollars and then, tomorrow, you’re going to tell me those are worth zero!?

Well, who made that up? Who made that rule?

Tai Zen:  Who determined that?

Brian Files:  Who determined that?

Tai Zen:  Now a lot of people in the Bitcoin community would argue that well, the current U.S. dollar is not backed by gold, it’s just digital zeros and ones on the computer also.

I don’t want to get into a debate on what’s wrong and what’s right. You’re just sharing what’s perceived by the law makers?

Brian Files:  Well, yes and no, it’s not bad.  The U.S. currency is backed by the U.S.

Tai Zen:  Yeah.

Brian Files:  So if the FDIC… I’m not a banker but there’s bunch of rules that support the dollar.

Tai Zen:  Okay. You made an interesting point earlier Brian, because I mentioned that Bitcoin is a public ledger technology that anyone in the world can access without having to pay fees on it and anybody can view it… and you work in the medical field.

Brian Files:  Let me stop you there… [you mean] anybody with a computer…

Tai Zen:  Yeah, anybody with computer or cell phone or some kind of internet connection.

Brian Files:  When I say dollar bill, I don’t need a computer or internet connection.

So, I’m just talking about the common folk and how they do stuff because that means the least common denominator or the person who’s not as educated, not tech savvy, etc.

Tai Zen:  They may not just have access to it.

Brian Files:  Right. Like I said, until I’m able to buy bread with Bitcoin, it doesn’t mean anything to me…

Tai Zen:  At this moment, I do not know any place. At this moment, I do not know of any business where you can walk in and pay for a loaf of bread [with bitcoin].

Brian Files:  Correct.

Tai Zen:  Okay. Now, that I know personally.

Brian Files:  Well, I’m talking about now you eliminate those people. So, when you say that you have access to it…

Tai Zen:  Because you can give like a gift card, you have to give some kind of gift tag card and then use that gift card to buy Bitcoins. But, in my opinion and it’s kind of like you’re saying is that hey, I want to be able to pay for the bread with the Bitcoin and at that point, I’ll know that it’s real.

Brian Files:  Exactly.

Tai Zen:  But, if I have to go and convert that [bitcoin] to something else to buy the bread, then to you it’s and the common people it’s not a currency.

Brian Files:  And they’re trusting in a source that they don’t know.

Right. So I’m online, I’m doing this and then what am I doing here?

Tai Zen:  Okay.

Tai Zen:  Now, if somebody is watching this video and they were interested in getting you to help them lobby for a specific issue or law or something or concern outside of Bitcoin.

Are you available to help them do that?

Brian Files:   Absolutely.

Tai Zen:  What is the best way to contact you? Is there a website or can you give me the info?

Brian Files:   I’m going to give you personally all my personal info. Anybody can give me a call even if they want to just educate themselves on what any legislation is all about.

Tai Zen:  Yeah.

Brian Files:   Am I bound by any contracts… So you got some interesting stuff going. I will definitely help you in any way.

Tai Zen:  Okay. Alright. Well, thanks man.

Brian Files:   Pleasure to meet you.

Tai Zen:  So thanks for watching this guys and if you want to support our channel, you’re welcome to visit our donation page and donate Bitcoins or whatever and I’ll catch you guys in the next video.

Brian Files:   Pleasure to meet you.

Tai Zen:   So thanks for watching this guys. And if you want to support our channel, you’re welcome to visit our donation page and donate Bitcoins or whatever. And I’ll catch you guys in the next video.

You can support and donate to our efforts on our donations page.

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