Published on July 25th, 2015 | by bitcoin0
Virtual Currency Risks are Outlined by San Francisco Fed
The Federal Reserve Bank of San Francisco (FRBSF) has published an article covering the risks of bitcoin and other virtual currencies.
The 1500-word article, authored by FRBSF Director Wallace Young, presents a broad overview of the cryptocurrency space and industry.
For example, in 2013, U.S. credit and debit cards accounted for over $4 trillion in spending.”
The article primarily focuses on the risks involved with cryptocurrencies.
The article reads:
“Bankers should carefully weigh the pros and cons of extending any loan secured by bitcoins or other virtual currencies (in whole or in part), or where the source of loan repayment is in some way dependent on the virtual currency.”
The article concludes:
“Virtual currencies bring with them both opportunities and challenges, and they are likely here to stay.”