2017.12.2022:31:00UTC+00U.S. Banking Regulator Pacifies Bitcoin Concerns, Backs Fintech Firms

Joseph Otting, who took oath as the Comptroller of the Currency in November, said on Wednesday that bitcoin does not pose a threat to the U.S. banking system and that innovative financial technology firms can be accommodated in the traditional lending business sector.

Speaking during his first formal briefing, the U.S. banking regulator played down worries over risks presented by bitcoin, which surged to new record highs of $19, 666, stating that a recent unofficial OCC survey of banks revealed they had little exposure to the cryptocurrency.

He stated that majority of the banks have shied away from the digital currency and bitcoin has not entered the banking system. He added that the OCC feels bitcoin poses no threat to the safety and stability of the banking system. He assured that everyone is still monitoring the currency.

Otting also said he had a positive outlook for a charter for fintech firms, which was first proposed by his predecessor Thomas Curry, but said that he needed time to assess the concept.

He said that fintech companies were moving into small-dollar lending business to fill a gap after regulators had driven banks out of that sphere with troublesome regulations and expressed his hope that lenders would re-enter the business with their respective fintech solutions.