Virtual currency can be simply defined as a form of electronic value, the value of which depends on the market. It is not backed by government (so that it lacks status as legal tender). The interest in virtual currency arises because it is allegedly safer from hacking, often cheaper and faster, and has finality of payment. Virtual currencies have legitimate purposes and can be purchased, sold, and exchanged with other types of virtual currencies or real currencies. Some states, including New York and California, are currently examining ways to regulate virtual currencies, and others are soon to follow. In the absence of an overarching federal payments regulatory framework, these state laws need to be harmonized to the extent possible. This drafting committee will consider the need for and feasibility of drafting state legislation on the regulation of virtual currencies, and will examine issues such as licensing requirements; reciprocity; consumer protection; cybersecurity; anti-money laundering; and supervision of licensees.