Well, for example: My understanding is that if you bank with dollars (in the US), the FDIC insures your deposit up to a certain amount. A feature of the currency is also a feature of the bank holding that currency. It's hard to pull the two completely apart.
The purpose of FDIC insurance is to protect against bank runs due to the nature of the fractional reserve banking system (not a problem with Bitcoin, at least not yet), not to protect against hackers.
Now, whether Bitcoin services need stricter regulation in terms of security is another question. I don't think Coinbase goes far enough with their security yet (2FA on withdrawals seems like a no-brainer)
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Well, for example: My understanding is that if you bank with dollars (in the US), the FDIC insures your deposit up to a certain amount. A feature of the currency is also a feature of the bank holding that currency. It's hard to pull the two completely apart.
The purpose of FDIC insurance is to protect against bank runs due to the nature of the fractional reserve banking system (not a problem with Bitcoin, at least not yet), not to protect against hackers.
Now, whether Bitcoin services need stricter regulation in terms of security is another question. I don't think Coinbase goes far enough with their security yet (2FA on withdrawals seems like a no-brainer)