Bitcoin Not a Threat to Financial Systems, Says US Chief Financial Regulator

in #bitcoin7 years ago (edited)

The US chief financial watchdog, the Financial Stability Oversight Board (FSOC), claims that Bitcoin and other cryptocurrencies do not pose a threat to existing financial systems around the world. In its 152-page report, the FSOC stated that virtual currencies are only utilized by a very small number of consumers and their underlying Blockchain technology offers potential in various industrial applications.

“Virtual currencies are only used by a very small number of consumers. We give a bit more credit to the potentially much broader applications of the so-called distributed ledger technology underpinning the innovations. It is noteworthy that this digital wave also presents a regulatory challenge, because the storage of data is decentralized, rather than being in one spot that governments can watch.”

Other highlights of the report
The report’s view on digital currencies is somewhat surprising due to the negative stance shown by several financial industry personalities. An example is a recent claim by JPMorgan Chase CEO Jamie Dimon, that Bitcoin is a ‘fraud’ and should not be taken seriously.

The report also cited various monetary threats, geopolitical risks and cybersecurity threats that confront the global financial system. Bitcoin was not cited as a threat.

Performance of the digital currency market
The virtual currency market registered considerable growth throughout 2017. However, despite its phenomenal growth, the market’s total combined value is still significantly below $1 trillion and likely too small to be a systemic threat to the global financial sector. At the same time, the potential that could be unleashed by cryptocurrencies is extreme.

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That looks like an important report, and thanks for bringing us some of its key points @ lisafroelings . I wonder if he took any time to inform us about where the real worrisome threats are? (That’s a sarcastic question.)

Did he also make the point that with the public block chains, the more prominent ones that is, law enforcement has an easier time tracking down criminals than they do with people who are using cash to do bad things?
As you may be aware, there is an important potential for community crypto currencies to make major contributions to lifting people out of poverty, in terms of access to basic goods and services.

Cheers!

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