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

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

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.

About aldirk

Check Also

Credits : https://cointelegraph.com/news/lights-camera-crypto-advertising-campaigns-for-new-money

Leave a Reply

Your email address will not be published. Required fields are marked *