It seems like the Federal Reserve, US central banking system, will leave no stone unturned when it comes to sack Bitcoin by any means. This time, they have accused the virtual currency for breaching security and are investigating into the whole matter. Anyone smells a conspiracy theory?
But this time it is not just Bitcoins which is under the radar of Feds, but the organization has also announced the investigation on other online payment systems including the leading PayPal. “Bankers worry that these new online players could disrupt the financial system”, said a Fed at a conference at the International Monetary Conference in Shanghai on Monday.
“We have been talking ... with banking organizations over the last year or two, trying more carefully to understand what the concerns are with these new payment mechanisms,” Federal Reserve Vice Chair Janet Yellen said.
Balancing the concern, she said that the US is already regulating online payment services like Coinbase and PayPal but the central bank is still looking forward for best practices for consumer protection.
“In point of fact, at least in the United States, there are regulations that apply, but that said, this is very much on our radar screen, and we are carefully trying to identify where the risks are”, she added.
Nobody knows when the tussle between US financial bureaucracy and Bitcoin will see an end. But they are doing a pretty enough job in promoting Bitcoins, although involuntarily. The financial sector can just wait now until the show goes on.
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