ABA suggests database creation for US Bitcoin Companies

The formation of a national database of digital currency companies and exemptions for banks from future licensing requirements has been proposed by the American Bankers Association (ABA) in a letter sent to the Conference of State Bank Supervisors (CSBS) on 16th February.

The licensure framework approach is being implemented in New York and is under consideration in New Jersey. Hearings on bitcoin regulations have been held by the CSBS earlier as well.

Although the letter portrays bitcoin and other digital currencies as innovative forces in the payment ecosystem, the ABA said that a licensure-based framework should be adopted by the CSBS due to the systemic risks seen in bitcoin.

"Although none of these failures have yet to feed directly through to the traditional payments system, as virtual currency usage grows it will become more tied to our traditional payments system. In the future, such failures could have system-wide consequences", ABA said.