{"id":37467,"date":"2023-03-09T03:35:18","date_gmt":"2023-03-09T08:35:18","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-warns-consumers-about-bitcoin\/"},"modified":"2023-03-09T03:35:18","modified_gmt":"2023-03-09T08:35:18","slug":"cfpb-warns-consumers-about-bitcoin","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-warns-consumers-about-bitcoin\/","title":{"rendered":"CFPB Warns Consumers About Bitcoin"},"content":{"rendered":"
\n

CFPB Now Accepting Complaints on Virtual Currency Products and Services<\/strong><\/em><\/p>\n

WASHINGTON, D.C. \u2014<\/strong> Today the Consumer Financial Protection Bureau (CFPB) issued a consumer advisory warning consumers about the risks of virtual currencies such as Bitcoin. The CFPB advises consumers to be aware of potential issues with virtual currencies such as unclear costs, volatile exchange rates, the threat of hacking and scams, and that companies may not offer help or refunds for lost or stolen funds. The CFPB also announced that consumers who encounter a problem with a virtual currency product or service can now submit a complaint with the Bureau.<\/p>\n

\u201cVirtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions,\u201d said CFPB Director Richard Cordray. \u201cVirtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market.\u201d<\/p>\n

The virtual currencies consumer advisory is available at: https:\/\/files.consumerfinance.gov\/f\/201408_cfpb_consumer-advisory_virtual-currencies.pdf<\/span> <\/svg><\/a><\/p>\n

Virtual currencies are designed to be an alternative to current payment systems. Better-known virtual currencies include Bitcoin, XRP, and Dogecoin. Often referred to in the industry as \u201cdigital currencies,\u201d they are a way for people to track, store, and send payments over the Internet, and they may have the potential to make payment processing cheaper or faster. But they are not backed by any government or central bank. In addition, because virtual currency accounts are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, if a virtual currency company fails \u2013 and many have \u2013 the government will not cover the loss. <\/p>\n

Virtual currency companies are springing up around the world to offer products and services to consumers. There are virtual currency exchanges, which are companies that help consumers buy or sell virtual currencies. There are also online \u201cdigital wallet providers,\u201d which are companies that allow consumers to create accounts with them to store and manage their virtual currencies. Many virtual currency exchanges are also wallet providers, and vice versa. <\/p>\n

Today\u2019s advisory warns that virtual currencies carry significant risk to consumers, including: <\/p>\n