Bernanke: Bitcoin and other virtual currencies may promote a more efficient payment system

Bitcoin and other virtual currencies, like any online payment system, may have long-term promise and may one day facilitate faster, safer and more efficient payment systems, but they may also come with risks in matters related to law enforcement and regulation, Federal Reserve Chairman Ben Bernanke said on Monday (November 19).

Bernanke said the Fed does not have the power to directly regulate virtual currencies, but generally monitors developments in the field. Other U.S. federal agencies, such as the Department of Justice and the Treasury Department, also wrote to say that online payment systems provide legal financial services, and they expect financial regulators to give them a favorable review. As of now, Bitcoin has soared to $788.