This paper examines the functioning of virtual currencies as payment systems through crypto-currency exchanges and the likely impact their integration with traditional payment systems may have on the interdependent global payment systems. Being a potential global transformational phenomenon, should virtual payment systems be regulated like other traditional intermediaries to manage the risks from their operations? Which regulator has the requisite regulatory architecture to comprehend the fast-evolving dynamics of the innovative payment solution and better manage the risks? These are some of the questions attempted in this paper.
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