Judith Alison Lee says virtual currency is here to stay

"Virtual currency is here to stay", said Judith Alison Lee, partner in the Washington, DC, office of global law firm Gibson, Dunn & Crutcher. She was a panellist in a company webinar on cryptocurrencies held last week and said that she does not believe in bitcoin as the virtual currency that succeeds over any other, however, she does believe that cryptocurrency isn't just a fad.

"We think this type of technology, this method of payment, has so many advantages over fiat currency. It's unlikely to completely go away," she explained.

The firm is also interested in other applications of the underlying blockchain technology and expects many applications other than currency coming to the forefront this year, she added.

"We think that some of the most interesting applications, from a legal perspective, are the potential use of blockchain technology for smart contracts, securities, property registers, IP and the storage of other data," she told CoinDesk after the webinar.

Moreover, given the potential of bitcoin to be used in illegal activities, Lee is certain that more regulation in the cryptocurrency space will come up in the near future.

"We do think there is going to be increased regulation at both the federal and state level ... especially in New York, where you have a very active and aggressive regulator."