This week's report by the Financial Action Task Force on the potential risks of virtual currencies such as Bitcoin pushed several cryptocurrency experts to defend the integrity of the virtual currencies."The FATF have recognised some of the potential benefits to society offered by cryptocurrencies, including the potential to facilitate micro-payments for the developing world and reduce transaction costs for funds transfers everywhere," said Jeremy Glaros, a director at Acuity Capital."Equally the FATF have acknowledged some of the downsides, where rogue elements have looked to exploit them."But Glaros said cryptocurrencies were "still very much a distant second to the favourite currency of the criminal world: cash.""It's really anonymous, untraceable, and is something the world has said we should have because, overall, it makes our lives much easier and simpler.Glaros said it was easy for the negative publicity around Bitcoin, such as that arising from drug transactions on the  Silk Road website, to be sensationalised and for the benefits of the Bitcoin system to be downplayed.His comments were echoed by Leon-Gerard Vandenberg, entrepreneur and venture capital investor."The Task Force acknowledges some of the advantages of Bitcoin, but they also raised concerns over anonymity and use of the currency for nefarious purposes. I'd like to remind people that two thirds of the world economy runs on 'system D' type transactions, which involve cash and non-cash barter type transactions that are not well monitored," he said.Bitcoin and other virtual currencies were not totally anonymous, he said - comparing them to a bricks and mortar scenario, where someone could move through a shopping centre with stolen credit card details, making purchases. "There will be surveillance cameras and other ways of identifying that person.""Similarly, there are very elegant ways to get past the anonymity and zero in on a bad actor in the Bitcoin economy," said Leon. "Both sides - law enforcement and the banks on one side, criminals on the other - have the same expertise, so it's very much an arms race.""I would welcome a system where a government agency such as Australia Post provides an online identity assurance service. This additional credential would add another level of value to the Bitcoin system and transparency, where all transactions would be visible."Craig Wright, CEO of web technologies company, HotwirePE observed: "In every society in history money was invented first and then governments decided to take control of it." In step with several of his peers, all of whom are speaking at the "Inside Bitcoins" conference in Melbourne next week, Wright suggests that, rather than being a source of disruptive risk to any payment system, Bitcoin technology is ideal for securing and enforcing registration of intellectual property and intangible assets."What governments need to understand is that if they step up and adopt this technology they can add value to an economic system and shut out any unregistered, and therefore illegal, activities."In terms of risk Wright suggests that the order starts with "cash then, loaded debit cards, then bearer bonds and at number 315 on that list