According to the head of an independent US Agency under the US Treasury that regulates the national banks, virtual currencies may prove to be revolutionary in the world of banking.In other terms, he has suggested that virtual currencies will bring about a drastic positive change to banking practices in the not so distant future.This statement came at the Institute of International Bankers this week.
Thomas J Curry, the head of the Office of the Comptroller Currency (OCC), raised the topic of virtual currencies during his speech that was intended to shed light on the Bank Secrecy Act and its receptiveness to groundbreaking innovations such as virtual currencies themselves.Thomas Curry talked about the serious challenges the banking industry has to overcome from criminal organisations. He also mentioned pointers on how all of these legitimate threats can be tackled with the help of sold risk management and anti-money laundering (AML) and (BSA) compliance.Furthermore, he discussed the topic of the regulation failing to detect the innovative payment methods that the criminals have resorted to as of late. The lack of adaptation to these new techniques has caused the regulatory bodies to become more vulnerable to criminal attacks.The following remarks belong to Curry : “New payment systems are creating greater efficiencies and convenience, and virtual currencies offer the prospect of instantaneous transactions directly between individuals and entities on a global basis.
These innovations are potentially revolutionary in their impact, and are advancing at a breakneck pace”.In another statement, the OCC chief expressed his disappointment in the core concepts of the BSA, which, according to him, is not in line with the rules and regulations of the 21st century. He also believes that virtual currencies could turn out to be extremely helpful in aiding law enforcements to combat criminal activity and disorders of the financial world.In an addition to his earlier statement, he said,“It is also foreseeable that, if properly employed, technology can be used by banks and the government to better meet the goals of the BSA, by providing more accurate and timely information to law enforcement and regulators, while simultaneously reducing cost and burden,"It is worth noting that Curry has prior experience of working as the director of the Federal Deposit Insurance Corporation (FDIC). He has been at the helm of his current organization since the year 2012.
Thomas Curry did not make a direct reference to the virtual currency, but he did highlight some of the operation issues that have hampered the progress of the industry when trying to form ties with traditional financial systems. He also advised banks to abolish the quite harsh practice of terminating customer accounts and instead focus on managing their risks appropriately.He closed his speech with these final words :“To the extent that it can, the OCC is committed to playing a constructive role in the dialogue and working with other parts of the US government to address this important issue”.
