French Central Bank Warns ver Bitcoin Risks | Reuters
Flexslider, News, Regulation, Trending December 8, 2013 Comments Off on French Central Bank Warns ver Bitcoin Risks | Reuters 42The Bank of France warned on Thursday about risks related to the digital currency bitcoin, adding its voice to growing concerns about the unregulated, online money.
Bitcoin is not backed by any central bank or government, or by physical assets. Their value depends on people’s confidence in the currency.
It has been gaining acceptance by the general public and investment community but have yet to become an accepted form of payment on websites of major retailers such as Amazon.com.
The Bank of France said the price of bitcoin in legal currencies was inherently volatile and users may find it difficult to convert to real money.
The anonymity that bitcoin offer users also raises the risk that they could also be used for money-laundering and financing of terrorism, the central bank said in a publication.
“Even if bitcoin is not currently a credible investment vehicle and therefore do not pose a significant risk to financial stability, they represent a financial risk for those who hold them,” the Bank of France said.
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