Following up on an article in which the United States Consumer Financial Protection Bureau (CFPB) was aiming to give bitcoin more attention comes a potentially controversial statement from the Bureau’s Director, reports The Hill.
The watchdog bureau is waving the flags of caution for those who may be interested in getting involved with the digital currency, or any other cryptocurrency, adding these emerging payment forms carry “significant risks.”
“Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions,” said CFPB Director Richard Cordray. “Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market.”
Many would disagree with Cordray’s comparison of the current state of digital currencies as a “wild west”, as it certainly seems we’ve passed that period.
Regulatory bodies not only in the United States, but around the world are giving digital currency increased attention, mostly to prevent financial crimes like money laundering or tax evasion.
Take New York, for example. The state’s Department of Financial Services is the first in the United States to make regulation proposals in recent weeks. There’s been no shortage of opponents, but it’s a start, and there’s sure to be more states following suit in the months ahead.
What do you think of the Director’s comments?
[textmarker color=”C24000″]Source[/textmarker] The Hill
