AFP — Federal Reserve studying effect of Paypal and Bitcoin on banking

The United States is studying the potential risk from online payment mechanisms like PayPal and Bitcoin, a top US Federal Reserve official told an international conference on Monday.
Some bankers have expressed worries that newer players in the online marketplace could have negative implications for the financial system.

“We have been talking… with banking organisations 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.

But she denied the widespread view that such players operate completely unregulated, saying the United States has a stronger regulatory environment than many are aware of, especially in the area of consumer protection.

The Raw Story
Federal Reserve studying effect of Paypal and Bitcoin on banking
Agence France-Presse