Crypto Carnage Continues As The Fed Warns Digital Currencies Could “Pose Serious Financial Stability Issues”

Update: Bitcoin and Ethereum are holding at the lows of the day, but following ECB comments earlier (see below), The Fed’s vice chariman of supervision, Randy Quarles, warns that digital currencies like bitcoin pose “serious financial stability issues” as they grow…
Today, the vast majority of our payments by volume and value are processed by regulated financial institutions. In the U. S. payment system, digital currencies are a niche product that sometimes garners large headlines.
While these digital currencies may not pose major concerns at their current levels of use, more serious financial stability issues may result if they achieve wide-scale usage.
Perhaps most ironic is Quarles’ description of the ‘drawbacks’ of cryptocurrencies…

This post was published at Zero Hedge on Nov 30, 2017.

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