Thursday, August 14, 2014

Bitcoin Complaint to Consumer Financial Protection Bureau


The Consumer Financial Protection Bureau issued a misinformed statement about the dangers of bitcoin other cryptocurrencies. The advisory was intended to instill fear and uncertainty about the new form of currency. Some of the inane statements include (italics ours):

  • Exchange rates are volatile and costs unclear (stock market and broker fees? Exchanges typically charge a flat rate 0.2% fee or less, which is as clear as it gets.)
  • Hackers and scammers pose serious security threats: Virtual currencies are targets for highly sophisticated hackers and scammers. Individuals, digital wallet providers, and exchanges are all at risk. (Bitcoin has already been tested and found secure. That is why individual companies like GOX that had not properly implemented bitcoin are touted instead of bitcoin as a technology being presented as flawed or insecure. Bitcoin can't be hacked by the US government, thus the attacks via advisories. Small hackers don't pose any risk. )
  • Companies may not offer help or refunds for lost or stolen funds (How is this specific to cryptocurrency? Isn't this why some people shop at Nordstrom )
The press release did help destabilize the bitcoin market and millions of people lost money. It was enough to inspire a mocking complaint with the CFPB about the CFPB.  The complaint is tongue-in-cheek, but also attempts to make some basic points.

Describe what happened so we can understand the issue:


The Consumer Financial Protection Bureau released a press release that adversely affected millions of individuals and businesses by erroneously implying that cryptocurrencies are more risky than traditional currencies and credit cards. Thousands of volunteers have worked in the open source development community to bring this innovative and promising new technology to the public. At the macro level, cryptocurrencies will reduce or eliminate credit card fraud, reduce bank fees, lower small business costs and untie money from government corruption and bad monetary policy. At an individual level, exposing personal identity information and credit details to strangers over the internet, to be viewed, copied, stolen and abused is an unnecessary risk associated with all credit card transactions and is directly addressed by cryptocurrencies like bitcoin. 
Stifling this technology through government power will hinder the economy and needlessly contribute to the harm done to millions through identity theft and credit card fraud annually.
It is apparent that the government is putting power above the public interest and is preying upon the uninformed. This sort of misinformation campaign is used to instill FUD (fear, uncertainty and doubt) in competitors, innovative ideas, improved products and superior technologies. Using the power of government in this way is deeply disturbing.
Further, there is no form on their website to submit a complaint relating to bitcoin or other cryptocurrencies. The form only allows complaints about money transfers.

 What do you think would be a fair resolution to your issue?:

The CFPB can resolve this issue by releasing a press release explaining cryptocurrencies are more safe than credit cards and promise to end billions in credit card fraud annually. With
cryptocurrency, as with cash, consumers do not expose their the personal identity information, credit card number or PIN. This information is not transferred, processed, and stored and thus can't be stolen and abused by third parties. Credit card fraud, where not only personal identity of the owner is stolen, but also the credit card information is stolen with it, is rampant when purchasing goods and services. This incurs a financial barrier of compliance costs and liabilities on small business related to processing and storing credit card information. 
Large retailers are increasingly victims of data security breaches. Target had more than 1 million customer records stolen, including credit card information. Smaller retailers are less able to
prevent data security breaches.  A 2013 ITRC survey shows that 15.6% of all data breaches expose credit card information. http://www.idtheftcenter.org/ITRC-Surveys-Studies/2013-data-breaches.html  
Futher, the credit card system was designed in the 1960's and was never intended for use on the internet. The Internet is a public network where the transmitted data is easily visible to unknown third parties. Recent revelations that SSL (the security layer used on websites) was compromised by spy agencies adds another level of concern with regard to the use of credit cards over the internet.
Lastly, if someone somehow gains access to a cryptocurrency wallet, it is strongly password encrypted, unlike a credit cards or cash.

Feel free to use this text, or improve it and submit further mocking complaints with the CFPB: click here

p.s.
The fact that the US Government is the largest holder of bitcoin in the world, did not make it into this complaint.  Oops. Click here to see their wallet.

24 comments:

Akmos17 said...

Assuming you have made the decision to disallow bitcoin mining, addressing unauthorized bitcoin mining is a multi-phase process. cloud mining

Mumsnet Thread said...

Fantastic!!!! Great company to deals Mumsnet Thread with ordering is so easy good prices great service…. absolutely fabulous so quick and helpful very good service would recommend to anyone.

Anonymous said...

Pretty! It was really a wonderful blog. Thanks for the provided information.Helping hand

Savings said...

I don’t suppose many of websites give this kind of information.

Unknown said...

Thumbs up! Astonishing results for me and elegant finishing in the complete outcome! I would definitely recommend them to every single of you out there! It is really worth checking!maryland auto insurance

https://www.crunchbase.com/person/barry-beck said...

Any practical industry experience, Beck and his then-fiancée, now-wife Marla Beck purchased the Georgetown shop as co-founders, coined it Blue mercury, and positioned it as a retailer for educated beauty consumers looking for a luxurious at https://www.crunchbase.com/person/barry-beck....

Unknown said...

Which type of number to choose is entirely up to you, Gmail Fax Pro
companies prefer to have toll-free numbers to deal with customers, but the choice varies from case to case, and it is something you will want to evaluate. In any case, a virtual fax number is a powerful tool that will add speed to your communications and will help you save money

here said...

Funding proving that you were innocent is extremely important. The defendant will have hired an attorney whose whole job it is to make it seem like you were also responsible for your injuries. You can help yourself by trying to get witnesses to stay around for the police to tell them what they saw.

Bing adverts said...

Many businesses choose Bing adverts over Google Adwords because there’s less competition and the ads are cheaper. If you’re a small business with a modest budget, you might consider trying Bing Ads and seeing if it has more of an impact than an Adwords campaign would. Bing Ads works in a very similar way to Adwords.

Company Incorporation in Malaysia said...

It is always easier to end an outsourced relationship in comparison to the full time employees. Full time employees are carrying a large price tag while our services can be engaged at a reasonable and affordable budget. By choosing Sueno Hub Company Incorporation in Malaysia, our clients can enjoy a quicker, more efficient operation.

Inigo said...

Superb selection of DMI Inigo Business furniture products for a variety of physical ailments caused by awkward office furniture, I bought an up and down computer mouse like a birthday present for any buddy. She states it has relieved a few of her discomfort and that everyone in her own workplace had been asking about this; following trying it away, I made a decision to obtain one personally, as well.

Unknown said...

Your blogs are fantastic, useful and your articles are wonderful.
trading

ricofe said...

I think that it's very strange point of view

Aubrey Dickey said...

I went over this website and I conceive you've got a large number of splendid information,
transcreation

Pest Controller near me said...

Continue on inspiring us with your writing! I have read lots of information before and I find this the most informative of them.
Pest Controller near me

Unknown said...

This is very amazing! Thanks for sharing this, You should visit this site too! https://emergencytorontolocksmith.ca/

Michael said...

This has always been an issue that needs to be addressed for the sake of all. Thank you for sharing this great context!
Michael | http://autodetailingpro.ca/

John Myers said...

It's a great blog you posted. Thank you very much. I hope you post about scrap car removal etobicoke too.

Kaysee Williams said...

Way back the moment bitcoin started I was so hesitant to join due to unsecured policy and process about this new kind of currency that is based alone electronically, so it's a good thing I didn't invest to other cryptocurrencies. So if ever you are accused of having crime, do not hesitate to call for help with a Criminal lawyer Toronto.

Liam said...

For the good of everyone, this has always been an issue that needs to be addressed. Thank you very much for sharing this fascinating context! https://autodetailingpro.ca/

Angel17 said...

Such an interesting and cool post. Thanks for sharing! https://www.appliancerepairsherwood.com

Ava James said...

The article is totally related to the bitcoin. This is such an interesting and useful article. Thank you for sharing with us. Now its time to avail Limo service West Palm Beach for more information.

Sophia Daniel said...

What a great article is. I love your writing skills. You explain each and every point related to the bitcoin very easily. Thank you. Keep posting more articles. Now its time to avail Limo service West Palm Beach for more information.

Gary sobers said...

Such an incredible post with great informative content. I surely share this post. Keep share your thoughts with us in this article. Now its time to avail moving company in Tuscaloosa, AL for more information.

ShareThis

Ads

LinkWithin

Related Posts Plugin for WordPress, Blogger...