Cumbria University of UK became the first public university to accept fees in digital currency, Bitcoin. A system for processing the payments is already operational.
The payment of fees through Bitcoin will be only applicable to two new courses on the roles of complimentary currencies in economic systems, which will be taught from summer this year at the Institute for Leadership and Sustainability (IFLAS).
The University said it hoped that the acceptance of Bitcoins on these courses would lead to learning by doing. The University supported Bitcoin due to its speed and cost, others due the new era of financial freedom it could enable.
Cumbria is thought to be the first public university in the world to accept the currency, although a private University in Cyprus announced last year that it would do so.
What is Bitcoin
Bitcoin is an online currency and payment system which enables the international transmission of funds. Though thousands of merchants worldwide accept this “cryptocurrency” – so called because it uses cryptography to guarantee its security – it has often been associated with illicit activity, most notably with the online illegal drug market called Silk Road.
How Bitcoin work:
Bitcoin is often referred to as a new kind of currency.
Each of the millions of Bitcoin currently in existence is represented by a unique online registration number.
To receive a Bitcoin, a user must also have a Bitcoin address - a randomly generated string of 27 to 34 letters and numbers - which acts as a kind of virtual post box.