News Column

Pennsylvania Banking and Securities Department Urges Consumers, Businesses and Investors to be Cautious with New Virtual Currencies

June 7, 2014

By a News Reporter-Staff News Editor at Investment Weekly News -- The Pennsylvania Department of Banking and Securities is urging consumers, businesses and investors to consider the risks if they intend to use or invest in virtual currencies, including cryptocurrencies such as bitcoin or litecoin.

Virtual currency is an electronic medium of exchange. Virtual currencies can be purchased, sold and exchanged with other types of virtual currencies or real currencies, like the U.S. dollar. This can happen through various mechanisms such as exchangers, administrators or merchants that are willing to accept virtual currencies in lieu of real currency.

"These virtual currencies - unlike U.S. dollars - are not backed by tangible assets or the full faith and credit of the U.S. government, and currently are subject to little or no regulation in any country," said Secretary of Banking and Securities Glenn E. Moyer. "In addition, we have seen that the value of virtual currencies is highly volatile and the very concepts underlying these currencies are still being debated by financial and legal experts."

Keywords for this news article include: Banking and Finance, Pennsylvania Department of Banking and Securities.

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Source: Investment Weekly News

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