Money stored on mobile payment apps may not be FDIC insured, US watchdog warns By Cointelegraph
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Keep your money in an insured account, not on an uninsured payment app, the United States Consumer Financial Protection Bureau (CFPB) warned Americans in a report released June 1. The increasing popularity and utility of nonbank peer-to-peer (P2P) payment apps, including for crypto asset transactions, makes the risk of loss in the event of a crisis ever more concerning, the watchdog said.
Public awareness of Federal Deposit Insurance Corporation (FDIC) coverage has grown since the bankruptcy of crypto platforms like FTX, Voyager and others last year, and this year’s banking crisis led to the loss of hundreds of millions of customer dollars, CFPB said. Nonetheless, billions of dollars are being stored on payment service apps without the benefit of FDIC coverage.
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Keep your money in an insured account, not on an uninsured payment app, the United States Consumer Financial Protection Bureau (CFPB) warned Americans in a report released June 1. The increasing popularity and utility of nonbank peer-to-peer (P2P) payment apps, including for crypto asset transactions, makes the risk of loss in the event of a crisis ever more concerning, the watchdog said.
Public awareness of Federal Deposit Insurance Corporation (FDIC) coverage has grown since the bankruptcy of crypto platforms like FTX, Voyager and others last year, and this year’s banking crisis led to the loss of hundreds of millions of customer dollars, CFPB said. Nonetheless, billions of dollars are being stored on payment service apps without the benefit of FDIC coverage.
Continue Reading on Coin Telegraph
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