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Patent
Federal Reserve Bank Of Atlanta | Date: 2015-07-30

A flaw remediation management server (herein flaw server) receives flaw data from a plurality of flaw sources. Further, the flaw server analyzes and correlates the flaw data to generate one flaw record per flaw for each asset. Furthermore, the flaw server prioritizes the flaw records and stores them in a flaw database along with additional information associated with each flaw record. Then, the flaw server groups the flaw records of the flaw database into one or more work items based on grouping criteria. Further, the flaw server calculates and assigns a work priority score to each work item. Responsively, the flaw server generates instructions to create, update, and/or cancel a remediation ticket for each work item based on the work priority score. Furthermore, the flaw server generates interactive flaw remediation reports and/or dashboards based on the flaw records for presentation to a user.


WASHINGTON--(BUSINESS WIRE)--Treliant is pleased to announce that Rebecca (Lynn) Woosley has joined the firm as Engagement Director focusing on fair lending compliance. “ The regulatory community continues to expand its Fair Lending expectations of the financial services industry both within and beyond the mortgage market,” said Treliant CEO Andrew L. Sandler. “ Lynn has decades of experience in helping companies navigate changing regulatory requirements and expectations with vigilance and agility. She has spent much of her career assisting banks to position themselves as leaders in fair lending compliance.” Lynn Woosley is a seasoned executive with extensive risk management experience in regulatory compliance, consumer and commercial credit risk, credit and compliance risk modeling, model governance, regulatory change management, acquisition due diligence, and operational risk in both financial services and regulatory environments. Lynn has held leadership positions including Senior Vice President and Fair and Responsible Banking Officer; Group Vice President for Wholesale Transaction Modeling; and First Vice President for Portfolio Management within the corporate risk management division of a Top 10 bank. Prior to joining the private sector, she served as Senior Examiner and Economist at the Federal Reserve Bank of Atlanta. “ Harnessing technology is vital to effective fair lending compliance, and Treliant has a strong track record in ensuring that testing, monitoring, and reporting systems are robust,” said Lynn Woosley. “ The most significant challenge for banks today is the looming January 2018 deadline for implementing expanded Home Mortgage Disclosure Act (HMDA) requirements, creating an urgent need to bring data collection, reporting, and disclosure into line with heightened standards. I look forward to working with Treliant clients on HMDA, fair lending, CRA, and other issues affecting the institution and its customers, including UDAAP, credit risk management, and credit scoring.” Treliant’s trusted advisory services focus on meeting the growing needs of our clients in the compliance, risk management, and operational landscape. As a privately-owned firm of leading professionals from industry and government, we help bankers, lenders, mortgage and brokerage companies, and FinTech firms grow and serve consumer, small business, and capital markets clients while navigating the changing policies, rules, and agencies influencing financial services providers. We focus on the industry’s most pressing concerns, including consumer compliance, mortgage operations, financial crimes, financial markets conduct and compliance, fair lending, litigation support, and operational risk. We serve clients from Main Street to Wall Street and across the globe, often in partnership with premier law firms. Our firm continues to grow in the service of our clients, with headquarters in Washington, DC and offices in Dallas and New York. For more information, visit www.treliant.com.


News Article | May 22, 2017
Site: www.prnewswire.com

"Transaction Alley is a global center of gravity for FinTech and the payments industry. Our payments companies and the products and services they are the life's blood of our economy," said H. West Richards, ATPC's Executive Director. "But the ingenuity and determination of those who would disrupt – and even destroy – that system is boundless. At Cyber-FORUM, we examined our industry's challenges and discussed the next critical steps needed from both the public and private sectors to assure that cyber attackers cannot succeed." Richards added, "I could not be more impressed by the leadership of the United States Senate Payments Innovation Caucus, Georgia's political leaders and state agencies, our federal partners in both Atlanta and Washington, DC, and that of the payments industry in supporting the concept of a Cyber-FORUM. This will provide a forum for cyber experts in government and industry to routinely meet and collaborate on issues such as detection, prevention, and disaster recovery. Improving the cyber resiliency of Transaction Alley clearly is in the national security interest of not just the United States, but our partners around the world. Symbolizing the Atlanta area's role as a critical link in the electronic payments network, both of Georgia's U.S. senators – Sen. Johnny Isakson (R-GA), Co-Chairman of the United States Senate Payments Innovation Caucus, and Sen. David Perdue (R-GA), a member of that Caucus, attended the inaugural Cyber-FORUM.  Sen. Perdue chaired the industry panel where he listened to inputs and perspectives on today's cyber challenges with respect to Transaction Alley. Sen. Isakson chaired the government panel where he, too, heard the viewpoints of a very esteemed group of government experts familiar with the threats to Georgia's Transaction Alley. "At this first Transaction Alley Cyber-FORUM, we are bringing together the best minds from both government and the private sectors to address critical security issues facing the electronic payments industry and to develop effective solutions," said Sen. Isakson. "I am grateful for the American Transaction Processors Coalition for convening such an important forum, which is in the best interest of our economic, financial and national security. I am proud to be a part of it." Sen. Perdue added, "It's fitting Atlanta is the host of this event, given the enormous role the region plays in electronic transaction processing. Companies based here in Transaction Alley, along with local and state officials, work hard to combat cyber security threats and stay ahead of the curve. Georgia plays a key role in protecting our nation's consumers and businesses, and I look forward to working with everyone here today to continue these efforts." The keynote address was delivered by Tom Fanning, CEO, President, and Chairman, Southern Company.  Fanning also serves as Chairman, Federal Reserve Bank of Atlanta, co-chairs the Electricity Subsector Coordinating Council and is Chairman of the Edison Institute. Cyber-FORUM included two panels, one from the private sector and one from the public sector, where the Senators heard perspectives on current cyber threats, past challenges and the value of an ongoing Cyber-FORUM platform that will provide help in securing the very important piece of America's consumer financial grid that resides in Transaction Alley. Representatives participating in the industry panel included: Dr. Rob Martin, Vice President of Security Solutions, IngenicoGroup North America; Doug Sandberg, Chief Legal Officer, WorldpayUS; and Jeff Schlauder, Chief Security Officer, InComm. A separate panel on government cybersecurity (at both the state and federal levels) featured: Chris Carr, Attorney General, State of Georgia; Ricardo Grave-de-Peralta, Assistant Special Agent in Charge, FBI Atlanta office; John Horn, United States Attorney, Northern District of Georgia, U.S. Department of Justice; Calvin Rhodes, Executive Director, Georgia Technology Authority; and Klint Walker, Cyber Security Advisor for Region IV, Department of Homeland Security. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cyber-forum-assesses-threats-to-electronic-payments-system-in-transaction-alley-300461505.html


News Article | May 25, 2017
Site: www.prweb.com

On May 19, Pathbuilders initiated the 29th class of the flagship mentoring program – Achieva. With a focus on contributing at a higher level in their organizations, 87 high-performing women representing 49 companies gathered to learn how to participate in a professional mentoring program and meet other program participants as well as meet their mentor. This kick-off marked the beginning of each mentee and mentor’s commitment to the year-long mentoring and leadership development program. “Each year, we are fortunate to bring together high-potential women from organizations focused on moving women forward with senior executive mentors who are uniquely paired to them,” states Helene Lollis, president and chief executive officer of Pathbuilders. “All with the goal of adding years of experience into the mentee’s hours and positioning her to contribute to her organization at a higher level.” Pathbuilders interviews and matches each mentee with an executive-level mentor who is best suited to help her grow professionally. Having personally engaged with each participant, Pathbuilders is then able to customize the year-long workshop curriculum to meet each woman’s core developmental needs as well as create relevant peer groups for each participant. For over 20 years, Pathbuilders has been focused on mentoring in the Atlanta business community. While continuous improvements are made throughout the year, Achieva remains true to the core experience for each mentee: one-on-one mentoring with a senior executive mentor, monthly educational workshops, and peer networking events. “I am excited to participate as a mentee in this year’s Achieva class, and look forward to taking my career and contribution to Cox Automotive to the next level,” states Judy Bowers, director at Cox Automotive. “Knowing I was matched with a senior executive mentor unique to me who will allocate time and energy to me monthly along with a rich curriculum of monthly educational workshops and a peer group rounds out a very full and exciting year.” Achieva is one of Pathbuilders’ four cross-company programs designed to develop high-performing women who aim to build an executive presence and high-impact leadership within their organizations. The Pathbuilders’ series of progressive professional development programs include: InsigniaSM: Entry-level women establishing credibility, developing self-awareness, learning to set priorities, and gaining insight into how the business works. Percepta®: Emerging leaders learning to think broadly, manage others, and make conscious choices—driving their careers and achieving exceptional business results. Pathbuilders is currently in open enrollment for this program. Achieva®: Mid-level managers with the potential to be senior leaders learning to navigate politics, building executive presence, and moving the company’s most critical initiatives forward. Inspiria®: Senior executives positioning themselves to have maximum impact—envisioning and creating cultures where others seek and achieve extraordinary success. “I have had the pleasure to work with Pathbuilders for the last eight years as a mentor. Their ability to bring together high potential female executives with perfectly matched mentors is nothing short of amazing. Pathbuilders provides the foundational learning needed by both mentee and mentors to create sustainable change and meaningful growth. The value they bring to each mentee as well as their sponsoring companies is invaluable. For those organizations that want to provide lasting growth for their female executives, I could not recommend a better investment in time and energy than Pathbuilders,” states Peter Scalera, vice president of trade marketing and execution for InComm. Participants in the 2017 Achieva program are from the following organizations: 22squared, Inc. ADP Alston & Bird LLP Arnall Golden Gregory LLP Chick-fil-A, Inc. Cisco Systems, Inc. CNA Insurance Company Coca-Cola Refreshments Colonial Pipeline Company Comcast Corporation Consulate General of Canada Cotiviti Healthcare Cox Communications, Inc. Cox Enterprises Cox Media Group Decisely Equifax, Inc. Federal Home Loan Bank of Atlanta Federal Reserve Bank of Atlanta Gas South, LLC Genuine Parts Company Global Payments, Inc. Graphic Packaging International Holder Construction Company IHG Imerys Junior Achievement of Georgia Kaiser Permanente Landis+Gyr Manhattan Associates McKesson Corporation Mercedes-Benz USA, LLC Patrick Law Group, LLC Porter Keadle Moore, LLP PowerPlan, Inc. Printpack, Inc. Purchasing Power, LLC RaceTrac Petroleum, Inc. Scientific Games Slalom, LLC Solvay SunTrust Banks, Inc. Tennessee Valley Authority Turner United Parcel Service, Inc. Valley Forge Fabrics, Inc. Veritiv Corporation WestRock Worldpay About Pathbuilders Inc. For over 20 years, Pathbuilders has been transforming top talent into high-impact leaders who move business forward. Through customized programming, Pathbuilders leverages a model that effectively combines mentoring, educational workshops, and interactive peer exchange to accelerate the career growth of individuals and directly contribute to the bottom-line success of client organizations. Pathbuilders has worked with nearly 4000 professionals from more than 500 client organizations, including Fortune 500 companies, colleges and universities, and government agencies. More information can be found at http://www.Pathbuilders.com, on LinkedIn, and on Twitter @Pathbuilders.


News Article | May 8, 2017
Site: www.prweb.com

Federal Reserve Bank of St. Louis President James Bullard discussed reasons for the downward trend in the natural real rate of interest during a presentation Monday at the Federal Reserve Bank of Atlanta’s 22nd Annual Financial Markets Conference. He examined this downward trend in a regime-switching context. He also discussed implications of the low natural rate for the Fed’s policy rate (i.e., the federal funds rate target). “According to the analysis presented here, the natural rate of interest, and hence the appropriate policy rate, is low and unlikely to change very much over the forecast horizon,” Bullard said. In his presentation, “An Illustrative Calculation of r†,” Bullard noted that r† is often referred to as “the natural real rate of interest.” Using U.S. data from 1984 to the present, he constructed an ex-post measure of the real rate of return on short-term government debt by subtracting the Dallas Fed trimmed-mean PCE inflation rate from the 1-year Treasury rate. “These raw data show a clear downward trend,” he said. “Macroeconomic theory does not like this downward trend—it wants a constant mean.” He looked at three factors that can influence the natural rate: 1) the labor productivity growth rate, 2) the labor force growth rate, and 3) an investor desire for safe assets. He included the third factor because the declining trend appears to be on real returns to holding government paper, not on capital. He noted that these types of factors generally have constant means but that there can be infrequent shifts in those means. Therefore, for each factor, he looked at two possible mean values, called “regimes.” He then delved into which of the three factors is the most important in accounting for the downward trend in r†. U.S. labor productivity appears to be in the low-growth regime, Bullard noted, citing a 2006 statistical model by James Kahn and Robert Rich that estimates the probability that the U.S. economy is in a low-productivity-growth regime. In terms of values in the two regimes, he noted that the most recent estimates from the Kahn and Rich model are for a growth rate of 1.26 percent in the low state and a growth rate of 3 percent in the high state. Regarding the regimes for U.S. labor force growth, he noted that since the Great Recession, the growth rate has been 0.45 percent. This compares with a higher growth rate of 1.33 percent before the Great Recession. “It looks like the U.S. is in a low-growth state, but a case could be made that some recent observations have been more consistent with the high-growth state,” he said. In regard to the third factor, Bullard noted that the U.S. is currently in a regime with a high desire for safe assets as opposed to a regime with a more normal desire. He noted that the estimated values for this factor are -3.04 percent in the high-desire-for-safe-assets regime and 0.63 percent in the normal-desire-for-safe-assets regime. “The difference between the two regimes is largest for this factor; it is in some sense the ‘most important’ of the three,” he said. The Implication for the Natural Real Rate of Interest To summarize, he noted that labor productivity appears to be in the low-growth regime, which would set that factor at 1.26 percent. He said that the labor force also appears to be in the low-growth regime, which would set that factor at 0.45 percent; however, labor force could plausibly be interpreted as switching to the high-growth regime, which would set that factor at 1.33 percent. Finally, he said that there appears to be a high desire for safe assets, which would set that factor at -3.04 percent. He then calculated the natural real rate of interest by adding the factors together. According to this analysis, r† is either -133 basis points or -45 basis points, depending on whether one views the labor force as being in the low-growth regime or high-growth regime, respectively. Turning to monetary policy implications, Bullard noted that with the U.S. unemployment gap and inflation gap near zero, a Taylor-type rule simply recommends setting the policy rate equal to the value of r† plus 2 percent, which is the FOMC’s inflation target. Thus, he obtained an appropriate policy rate setting of either 67 basis points or 155 basis points (again, depending on whether the labor force is in the low-growth or high-growth regime). He noted the actual current policy rate is about 88 basis points. “The policy rate is approximately at an appropriate setting today according to this analysis and with gap variables assumed to be zero,” he said. “There is a fairly large and growing literature trying to understand the downward trend in the natural rate of interest. The literature tends to be quite a bit more sophisticated than the analysis presented here,” Bullard said. “This analysis has provided some background on how one might begin to think about recent trends in the natural safe rate of interest in a regime-switching context.”


News Article | October 28, 2016
Site: www.prweb.com

Nicki Grossman, former President and CEO of the Greater Fort Lauderdale (Florida) Convention & Visitors Bureau (CVB) and Broward County Commissioner, has joined the influence marketing and advertising team at ADEPT Strategy & Public Relations. Since 1995, Nicki Grossman acted as the president of the CVB heading up Broward County's convention and tourism marketing efforts. Mrs. Grossman was elected to the Hollywood, Florida Commission in 1978 and elected to the Broward County Commission in 1982. She served on the Board of Directors for the South Florida Super Bowl Host Committee, the Federal Reserve Bank of Atlanta's Travel and Tourism Advisory Council, American Coastal Coalition Board of Directors, and the Florida Commission on Tourism (where she was elected 2007-2008 Chair for VISIT FLORIDA). In 2007, Nicki was inducted into the VISIT FLORIDA Tourism Hall of Fame. In 2016 she was named to the Destination Management Association Hall of Fame and will be receiving a lifetime achievement award from North Star Publishing Group, the industry’s largest news association. Mrs. Grossman was named Top 25 Most Influential People in the Meetings Industry by Meeting News. She was also named one of the 100 Most Powerful Women in Tourism by Travel Agent and named one of the Top 25 Marketing Minds by the Hospitality Sales and Marketing Association International (HSMAI). Nicki E. Grossman was born and raised in Miami Beach. She is married to Circuit Court Judge Mel Grossman and is the mother of three daughters and "nana" to eight grandchildren. At ADEPT, Nicki joins a focused team who actively market, advertise and develop strategic communications for both public and private clients. Throughout South Florida and the Caribbean, ADEPT boasts over a dozen clients including real estate developers like the developers of the Broward Convention Center Hotel Expansion, Broward College, The City of Key West, The City of Fort Lauderdale, the Connect Miami Beach Light Rail Concessionaire Team and the country’s largest indoor entertainment venue Xtreme Action Park located in Fort Lauderdale. “I am very happy to join ADEPT’s boutique team of professionals and I hope to leverage my travel and tourism experience while adding value to their existing and future client base”, indicated Grossman. “I see a wonderful opportunity to support a growing Broward County small business”, concluded Grossman. About ADEPT Strategy & Public Relations: Founded in 2013 by Dana Pollitt and Julie Ruffolo, ADEPT focuses on providing strategy and public relations consulting services to public and private clients. With offices in Fort Lauderdale, Miami Beach and Key West, ADEPT provides strategic communications, advertising, business development services, public involvement, outreach, governmental affairs, stakeholder coordination, influence marketing and branding services. For more information, visit http://www.Adept.co, email ADEPT at Info(at)Adept(dot)co or contact 954-769-1533.


News Article | November 18, 2016
Site: www.prweb.com

Diana Murphy has been nominated to serve a second one-year term as the 64th president of the United States Golf Association by the USGA Nominating Committee, as the organization prepares for its 123rd year of service to the game of golf. In addition, there are three newly nominated candidates for the 15-member Executive Committee: Thomas Barkin, Stephen Beebe and William Siart. Their collective experience encompasses expertise in strategic planning and nonprofit leadership, as well as a passion for environmental sustainability. If elected at the USGA’s Annual Meeting on Feb. 4, 2017 in Washington, D.C., they will replace retiring members William Fallon, Malcolm Holland and Asuka Nakahara. “Bill, Asuka and Malcolm have shared their time and experience to help guide the USGA through one of the most pivotal strategic planning periods in our history,” said Murphy. “I have been privileged to work with them and all of the successful professionals with such diverse talents who have advanced the game and the USGA’s leadership of it. Volunteers have always been at the heart of our mission, and we appreciate all they have done and will continue to do.” The committee also nominated Mark Newell, a four-year Executive Committee member, as president-elect. The new officer position replaces the role of vice president eliminated in 2016, and supports succession planning for future association leadership. Newell, who served as USGA general counsel in 2011-12, currently chairs the USGA Rules of Golf Committee. He has focused significant efforts on a multi-year Rules modernization project led by the USGA and The R&A, and he continues to provide support and leadership toward the development of a world handicap system. Current officers Sheila Johnson and George Still have been nominated to continue their service as secretary and treasurer, respectively. The eight committee members nominated to continue their service are: Michael Bailey, Stuart Francis, Thomas Hough, Robert Kain, Martha Lang, Gregory Morrison, Mark Reinemann and Clifford Shahbaz. In addition, Robert Weber has been nominated to serve a second term as USGA general counsel. Notable experience and achievements of the three committee nominees are as follows: Thomas Barkin, 55, of Atlanta, Ga., is a senior partner at McKinsey & Company, a global management consulting firm. For the past 30 years, Barkin has dedicated his professional career to providing executive-level strategic and business counsel to clients across multiple industries. For the last seven years, he has been the company’s global CFO and chief risk officer, with oversight of finance, legal and information technology functions, among others. Barkin earned his bachelor’s, MBA and law degrees from Harvard University. He currently serves on the executive committee of the Metro Atlanta Chamber of Commerce and is a member of the Emory University Board of Trustees, and he is a former chairman of the Federal Reserve Bank of Atlanta. A lifelong avid golfer and current member of East Lake Golf Club and the Capital City Club in Atlanta, he continues to try to play as well as he did when he won his junior club championship at age 16 in Tampa, Fla., and enjoys playing the game both in the United States and abroad. Stephen Beebe, of La Quinta, Calif., put himself through the University of Idaho College of Law by working on golf course maintenance crews, after spending most of his high school years working on the grounds staff at Blackfoot (Idaho) Municipal Golf Course. He credits that work for his passion for sustainability and efforts to highlight golf’s responsible management practices. Beebe, 71, became president and CEO of the J.R. Simplot Company in 1993, guiding one of the country’s largest privately owned companies through continued global expansion until his retirement in 2002. He has served on the grounds committee at every club where he has been a member, and continues to support courses in his current home state of California on drought-related issues. Beebe competed in the 1986 U.S. Mid-Amateur Championship, and is a past member of the Idaho Golf Association Board of Directors. He is a member of the Citrus Club/PGA West and the Quarry Golf Club in La Quinta, Calif. William Siart, of Pacific Palisades, Calif., a career banking executive, has dedicated his retirement years to supporting public education and the arts. He is the founder and chairman of Excellent Education Development (ExED), a California-based nonprofit with a mission to provide business and support services to public charter schools that deliver high-quality education in low-income neighborhoods. He is a member of the board of trustees and the executive committee of the University of Southern California, and the chairman of its finance committee. He also serves as a trustee of the J. Paul Getty Trust, which guides the largest privately endowed museum in the world, and is chairman of its finance committee. His collective charitable work earned him the Woodrow Wilson Award for Public Service in 2006, an accolade whose recipients include heads of state and international leaders. He earned a bachelor’s degree in economics from Santa Clara University, and an MBA in finance from the University of California, Berkeley. He served as chairman and CEO of First Interstate Bank from 1994 to 1996, capping more than 35 years in the financial sector. Siart, 69, is a member of The Los Angeles Country Club, Merion Golf Club, Riviera Country Club and The Vintage Club. The full Nominating Committee report will be distributed to USGA member clubs by Dec. 10, 2016, along with the complete schedule of the Annual Meeting, to be held Feb. 4 at the Ritz-Carlton Hotel in Washington, D.C. The day-long event will culminate in the USGA Annual Service Awards Dinner, which recognizes achievements by industry professionals and volunteers who have served the game of golf. For more information on current members of the USGA Executive Committee, visit usga.org. About the USGA The USGA conducts the U.S. Open, U.S. Women’s Open and U.S. Senior Open, as well as 10 national amateur championships, two state team championships and international matches, attracting players and fans from more than 160 countries. Together with The R&A, the USGA governs the game worldwide, jointly administering the Rules of Golf, Rules of Amateur Status, equipment standards and World Amateur Golf Rankings. The USGA’s reach is global with a working jurisdiction in the United States, its territories and Mexico, serving more than 25 million golfers and actively engaging 150 golf associations. The USGA is one of the world’s foremost authorities on research, development and support of sustainable golf course management practices. It serves as a primary steward for the game’s history and invests in the development of the game through the delivery of its services and its ongoing “For the Good of the Game” grants program. Additionally, the USGA’s Course Rating and Handicap systems are used on six continents in more than 50 countries. For more information about the USGA, visit http://www.usga.org.


Patent
Federal Reserve Bank Of Dallas, Federal Reserve Bank Of Kansas City, Federal Reserve Bank Of Atlanta and Federal Reserve Bank Of Cleveland | Date: 2010-03-24

Producing print streams for efficiently generating properly formatted and ordered paper cash letters comprises print stream file that includes electronic form definitions for each cash letter document. The cash letter documents can include a cover page, one or more bundles of substitute checks, a bundle summary for each substitute check bundle, and/or a cash letter bundle summary. Information from an electronic image cash letter file can be input in data fields of the electronic form definitions. Printing the information in the print stream file results in a properly formatted and ordered paper cash letter including substitute checks and audit data. Each substitute check can include all of the MICR data provided on a corresponding, original paper check. The audit data includes the cover page, bundle summary(ies), and/or cash letter bundle summary, which can each detail the documents printed concurrently therewith.


Patent
Federal Reserve Bank Of Atlanta | Date: 2012-02-10

Redirecting or returning international credit transfers is described. In one embodiment a system for redirecting or returning international credits is described including a gateway operator that receives a credit transfer from a foreign originator, compares routing and account numbers of the credit transfer with a predetermined table of routing and account numbers, and forwards the credit transfer based on the comparison of the routing and account numbers with the predetermined table, an Automated Clearing House (ACH) that presents the credit transfer to a Receiving Depository Financial Institution (RDFI) for clearing and settlement, and a wire transfer service that presents the credit transfer to the RDFI for clearing and settlement. In another embodiment a method for redirecting or returning international credits is described.


News Article | February 23, 2017
Site: motherboard.vice.com

As Canada's interest in virtual currencies grows, so do the contradictions on how to approach regulating them. In 2015, a report from the Senate concluded that a hands-off approach to regulation was best in order to let the technology flourish and mature. A new staff report from the Bank of Canada says just the opposite: to work in Canada, virtual currencies like bitcoin will require significant government intervention, it argues. The report, written by two Bank of Canada employees and one visiting scholar from the Federal Reserve Bank of Atlanta, looked to the past for lessons on how to deal with digital currencies in the future. Specifically, it analyzed the brief time in the 1800s when Canada had both a government-issued currency and many non-uniform notes issued by individual banks, backed by the bank's own assets. Read More: The Canadian Senate Announced Its Bitcoin Report In a Totally Appropriate Way Using the lessons learned from the struggle to get this chaotic system under control, the report authors have some thoughts on virtual currencies. Namely, "We conclude that well designed and managed private digital currencies could circulate widely but only with appropriate government regulation…" The report, like all staff reports, reflects the position of the authors and does not necessarily reflect the positions of the Bank of Canada. It's strongest on the question of safety, emphasizing that people should be able to buy virtual currencies without a significant risk of losing out if the issuer goes under, a non-trivial risk with most virtual currencies as it stands. Often, this is due to exchanges—where virtual currencies are bought and sold—being hacked. As recently as August of 2016, popular bitcoin exchange Bitfinex was hacked and lost $60 million worth of coins. The Bank of Canada report doesn't go into great detail about what should be done with virtual currencies on this question, but says that they "can be made perfectly safe with government intervention, although it cannot be achieved solely through regulation." You also need insurance, the report says, pointing to the creation of the Bank Circulation Redemption Fund in 1890, which required all Canadian banks to pay into a central fund that would cover customer losses if any of them couldn't back up their notes. The authors raise the possibility of something similar being introduced for virtual currencies. "Some form of insurance could be an important part of making a digital currency system safe" "The historical episode showed that an insurance scheme of some form was an important part of ensuring the safety of bank notes," a Bank of Canada spokesperson wrote me in an emailed statement. "Similarly, some form of insurance could be an important part of making a digital currency system safe." Of course, the spokesperson noted, insurance is outside of the purview of the Bank of Canada. Beyond calling for more government intervention, the report is already ruffling the feathers of cryptocurrency enthusiasts by making some silly claims, at least on the face of it. One is that digital currencies will be counterfeited like bank notes were. Blockchain-based currencies like bitcoin are potentially vulnerable to something akin to counterfeiting (but still notably different) in the form of the "double-spend problem." Double-spending involves sending a single transaction through the network twice, nearly simultaneously, and having the target accept the one that the network eventually rejects, leaving the attacker with the funds. The report mentions the double-spend problem, but there is no such thing as a counterfeit bitcoin. This is because a "bitcoin" is just a number and an address that the network deems to be valid. There's nothing to counterfeit. "There are hundreds of digital currencies in existence, the authors didn't specifically refer to any of them when they made the observation about possible counterfeiting," the spokesperson said when questioned on this point. "The paper draws lessons for digital currencies, it is not a comparative study of their respective security elements." That difference aside, the report seems to be a clear indicator that Canada is looking more seriously at getting involved with virtual currencies—and not necessarily with the hands-off approach previously advocated for by the government. Get six of our favorite Motherboard stories every day by signing up for our newsletter .

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