Could CFPB review force virtual currencies to abide by traditional payment rules?

first_imgby. Jeff GreenMuch debate on cryptocurrencies has gone on over the past few years, driven by the cult-like following of Bitcoin and the general transaction anonymity most of the so-called virtual currencies support that has led on occasional to illicit use. In fact, many countries, cities and even merchants have taken positions on the issue, either through legislation, agency mandate or acceptance policy.However, none may have the ultimate say on the future of virtual currencies as the Consumer Financial Protection Bureau (CFPB). Indeed, what the bureau says about such products as Bitcoin, XRP  and Dogecoin can transcend what others have to say, and do. It’s purpose, after all, necessitated by the instigators of the recent financial crisis, is to protect U.S. citizens from financial organizations that might not have their best intentions in mind.The bureau’s stand on virtual currencies is so important, the U.S. General Accountability Office recently issued a report calling on the CFPB to take up the issue. Earlier this week, the CFPB did just that, putting its early stake in the ground where it stands on digital currencies.The bureau, it appears, is none too pleased with how virtual currencies operate. In the end, it’s likely the supporters of cryptocurrencies could find themselves having to follow the same rules as such traditional payments players as Visa and MasterCard, not to mention issuers like Chase and Bank of America. Perhaps at the very heart of that consistency eventfully will be the Know Your Customer rules all U.S. banks and other financial-services providers must follow. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img