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European Central Bank: Bitcoin should be taken into consideration

Wednesday 26 March 2014 13:47 CET | News

Yves Mersch, Member of the Executive Board of the European Central Bank (ECB), has reported that digital currencies should not be ignored despite their relatively small impact on the economy.

Yves Mersch admits that although virtual currencies do not have an impact on the general economy, they have the potential to do so in the future. He concludes that crypto-currencies cannot affect price stability or financial stability in Europe, but they may pose risks for users. User risk, he highlights, is more related to speculative investments and consumer protection, and not necessarily to payments.

In December 2013, the European Banking Authority (EBA) issued a warning on potential risks associated to virtual currencies, focusing on fraud and theft. For its part, the ECB has remained silent on the matter since its 2012 report.
 


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Keywords: European Central Bank, Bitcoin, digital currency, crypto-currency, online payment
Categories: Payments & Commerce
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Countries: World
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