Digital Currencies Such As Bitcoin Compared To The Wild West

Aug 12, 2014
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DAVID GREENE, HOST:

The Consumer Financial Protection Bureau is telling consumers to be wary of Bitcoin and other digital currencies. They warn of volatile exchange rates, possible exposure to hackers and the fact that, unlike hard currency, Bitcoin is not backed by the federal government. The director of the Consumer Financial Protection Bureau actually compared these digital currencies to the wild west. An executive from Bitcoin acknowledged the risks and volatility of the digital currency - pointing out that it is still very new technology. But he said it should stabilize in the next 10 to 15 years. In the meantime, the Consumer Financial Protection Bureau will begin accepting complaints from people who use Bitcoin and products like it. Transcript provided by NPR, Copyright NPR.