libertyjam
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- Joined
- Dec 23, 2009
- Messages
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All of a sudden doesn't this seem a bit too synchronistic with an orchestrated implosion of the dollar?
[h=1]
http://coinbrief.net/fed-bitcoin/
The Federal Reserve Sees A Bright Future For Bitcoin[/h] Posted by: Sean Wince May 20, 2014 in Bitcoin
At this point the U.S. Federal Reserve is well aware of Bitcoin, including all of its advantages and disadvantages. The Federal Advisory Council, which regularly consults with the Board of Governors of the Federal Reserve, held a meeting on May 9 where the banking industry representatives discussed whether Bitcoin poses a threat to the traditional financial system and regular consumers.
The verdict: Bitcoin is potentially risky only for people who buy it, but as these risks are addressed over time, the digital currency could drastically change the world’s finances for the better.
First of all, the FAC’s report notes that “Bitcoin’s nascency makes it more curiosity than threat” and it only accounts for a “fraction of today’s global fund flows.” In other words, Bitcoin is still in its adolescent stages with plenty of room to grow. In fact, the FAC sees the possibility of Bitcoin having a great impact in the long term as “the network self-refines and adoption increases, requiring traditional payment processors to adapt and respond.”
[h=2]Greater Financial Inclusion[/h] The FAC’s meeting report lists several of Bitcoin’s most popular advantages, including lower transaction fees for merchants than credit cards. In addition, the report notes that digital currency “enables cheap international remittance to the developing world and the developed world’s ‘unbanked,’ expanding financial inclusion.” Essentially the FAC is acknowledging that the vast majority of people on Earth don’t have access to a bank, and that Bitcoin could give them more power over their money.
The Federal Reserve even sees a scenario where traditional banks join the cryptocurrency fun and “participate increasingly in Bitcoin fund flows,” an idea that is supported by the fact that more people are using accounts with multiple currencies. It appears that the Fed sees nothing intrinsically wrong with financial institutions dealing in cryptocurrency.
[h=2]Consumer Protection[/h] Bitcoin’s greatest flaw, according to the FAC report, is the risk it poses to consumers who buy the digital currency. This risk is mainly that Bitcoin is highly susceptible to theft, a problem magnified by unsecured wallets and unreliable exchanges like Mt. Gox.
However, the Fed suggests a few solutions. “Supervised risk management of Bitcoin exchanges” would ensure their solvency, and further regulations could require that the exchanges invest in appropriate cybersecurity measures to prevent hacking. These efforts would theoretically prevent another Mt. Gox from occurring in the future.
[h=1]
http://coinbrief.net/fed-bitcoin/
The Federal Reserve Sees A Bright Future For Bitcoin[/h] Posted by: Sean Wince May 20, 2014 in Bitcoin
At this point the U.S. Federal Reserve is well aware of Bitcoin, including all of its advantages and disadvantages. The Federal Advisory Council, which regularly consults with the Board of Governors of the Federal Reserve, held a meeting on May 9 where the banking industry representatives discussed whether Bitcoin poses a threat to the traditional financial system and regular consumers.
The verdict: Bitcoin is potentially risky only for people who buy it, but as these risks are addressed over time, the digital currency could drastically change the world’s finances for the better.
First of all, the FAC’s report notes that “Bitcoin’s nascency makes it more curiosity than threat” and it only accounts for a “fraction of today’s global fund flows.” In other words, Bitcoin is still in its adolescent stages with plenty of room to grow. In fact, the FAC sees the possibility of Bitcoin having a great impact in the long term as “the network self-refines and adoption increases, requiring traditional payment processors to adapt and respond.”
[h=2]Greater Financial Inclusion[/h] The FAC’s meeting report lists several of Bitcoin’s most popular advantages, including lower transaction fees for merchants than credit cards. In addition, the report notes that digital currency “enables cheap international remittance to the developing world and the developed world’s ‘unbanked,’ expanding financial inclusion.” Essentially the FAC is acknowledging that the vast majority of people on Earth don’t have access to a bank, and that Bitcoin could give them more power over their money.
The Federal Reserve even sees a scenario where traditional banks join the cryptocurrency fun and “participate increasingly in Bitcoin fund flows,” an idea that is supported by the fact that more people are using accounts with multiple currencies. It appears that the Fed sees nothing intrinsically wrong with financial institutions dealing in cryptocurrency.
[h=2]Consumer Protection[/h] Bitcoin’s greatest flaw, according to the FAC report, is the risk it poses to consumers who buy the digital currency. This risk is mainly that Bitcoin is highly susceptible to theft, a problem magnified by unsecured wallets and unreliable exchanges like Mt. Gox.
However, the Fed suggests a few solutions. “Supervised risk management of Bitcoin exchanges” would ensure their solvency, and further regulations could require that the exchanges invest in appropriate cybersecurity measures to prevent hacking. These efforts would theoretically prevent another Mt. Gox from occurring in the future.
