The director of the Federal Reserve Bank of California, Wallace Young, has written an article warning of the various risks that banks may face when interacting with virtual currencies. He seems to highlight compliance risk as being the most significant form of risk banks will face, with operational risks and credit risks being less significant; he concludes that banks should judge virtual currency related business opportunities on a case-by-case basis, and that "banks need not turn away from this business as a class". Young's views may provide some insight into the regulatory landscape that evolves around virtual currencies in San Francisco.
The director of the Federal Reserve Bank of San Francisco, Wallace Young, has written an article warning of the various risks that banks may face when interacting with virtual currencies. He seems to highlight compliance risk as being the most significant form of risk banks will face, with operational risks and credit risks being less significant; he concludes that banks should judge virtual currency related business opportunities on a case-by-case basis, and that "banks need not turn away from this business as a class". Young's views may provide some insight into the regulatory landscape that evolves around virtual currencies in California.