Growing popularity of the bitcoin and other crypto currencies poses risk to financial stability of the United States. An annual report of the Financial Stability Oversight Council published on Wednesday, June 22, touched on the issue.
“Like most new technologies, distributed ledger systems also pose certain risks and uncertainties which market participant and financial regulators will need to monitor,” the document reads.
The FSOC says market participants lack working experience with crypto currencies and are not aware of vulnerable spots of the system.
“Although distributed ledger systems are designed to prevent reporting errors or fraud by a single party, some systems may be vulnerable to fraud executed through collusion among a significant fraction of participants in the system,” the report warns.
