One of my law students recently raised this question to me: Could a lawyer allow payment for legal services in Bitcoin? It’s not a question I’ve ever heard before, and it’s a good one.
Bitcoin is digital currency and it’s not managed by any central authority but the transactions occur through Bitcoin miners which is basically a server that communicates and confirms the transaction and records it on a ledger. They can be transferred by mobile devices. Recent articles have suggested that eBay and Paypal may open up their sites to the use of Bitcoin.
There is criticism around Bitcoin that the exchange rate is too volatile. A Twitter follower in response to my posing of this question replied: “Would you accept bearer bonds?” There are also potential security issues. The best article I’ve read on that subject was in Wired by an author who had tried to break Bitcoin and failed. And then there are the questions about IOLTA and trust accounting rules and compliance. There is a Bitcoin Foundation which supports the standardization of Bitcoin and claims to support the software design and cryptography behind it.
I could find only one other instance where anyone in the legal profession was offering payment by Bitcoin. A law firm in Albuquerque called Law 4 Small Business published a press release announcing their offering of payments via digital currency.
For a virtual law practice, adding Bitcoin to possible online payment methods might make sense. I’m still thinking through this one. Anyone else have any reactions?
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