Due to the high volatility of VCs it might seem appropriate to require any VC trading to be backed by adequate levels of capital, and segregated from other trading and investment activities.
Given the risks posed by leverage, banks should not accept VCs as collateral, or should only accept them with haircuts that appropriately reflect past volatility and liquidity, as well as market and operational risks. Likewise, limits on leverage could be examined. Conclusion Let me conclude. Do VCs herald a new world of money? No, virtual currencies are a misnomer in the first place.