Payments

10:23 AM
Connect Directly
RSS
E-Mail
50%
50%

Virtual Currencies Draw Fresh Regulator Scrutiny

Federal regulators are paying more attention to the growing use of bitcoin and other virtual online currencies.

The growing popularity of virtual currencies in online transactions is forcing the government to turn its attention to regulating a new breed of digital money. But the Government Accountability Office said agencies still need to pay more attention to consumer protection.

Virtual currencies, such as bitcoin, use digital wallets and peer-to-peer Internet connectivity, rather than bank accounts and traditional wire transfer networks, which puts them largely outside the view of law enforcement and beyond the scope of current regulation.

"While these virtual currency systems offer some benefits, they also pose risks," the GAO said in a recent report.

[Read the Rest on InformationWeek]

William Jackson is a technology writer based in Washington, D.C. He has been a journalist for more than 35 years, most recently covering the $80 billion federal government IT sector for Government Computer News. His coverage has ranged from architecture to international ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Dec. 2, 2014
BS&T's 2014 Elite 8 executives are leading their banks to success, whether it involves leveraging the cloud, modernizing core systems, or transforming into digital enterprises.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.