Virtual Currency as Crypto Collateral Under Article 9 of the UCC: Trying to Fit a Square Peg in a Round Hole

Authors

• Sharon E. Foster, University of Arkansas, Fayetteville

Keywords

personal property, security interest, collateral descriptions, security agreement

Abstract

This Article addresses the current state of academic discussion regarding the problems of creating an enforceable security interest under Article 9 of the Uniform Commercial Code (UCC) using virtual currency, such as bitcoin, as collateral. While academic discussion is helpful and, indeed, may one day be adopted by a court and become law, the primary problem in using virtual currency as collateral is the uncertainty regarding using Article 9 to create an enforceable security interest in virtual currency. Simply put, Article 9 does not specifically address virtual currency as collateral, and we have no case law at this time to rely upon.

Recommended Citation

Sharon E. Foster, Virtual Currency as Crypto Collateral Under Article 9 of the UCC: Trying to Fit a Square Peg in a Round Hole, 73 Ark. L. Rev. 263 (2020).
https://doi.org/10.54119/alr.wrpx4080
Available at: https://scholarworks.uark.edu/alr/vol73/iss2/2