Will the EBA be able to stop the growing use of Bitcoins? 2

Three Bitcoin digital currency coins

Back in December the European Banking Authority (EBA) issued a warning to consumers on virtual currency.

Then in July the EBA issued an opinion on virtual currencies.

The best known Virtual Currency (although not named by the EBA) is Bitcoin.

The European Banking Authority, the EBA, has called on national supervisory authorities to discourage banks and credit institutions from buying, holding or selling virtual currencies.  It calls for regulation of market participants at the interface between conventional and virtual currencies. Over the longer-term, the EBA is calling for a ‘substantial body’ of regulation to be applied to virtual currency market participants, including the creation of ‘scheme governing authorities’ accountable for the integrity of a virtual currency scheme and the imposition of capital requirements.  In the short term, the EBA is calling for national authorities to ‘shield regulated financial services from virtual currencies’.

So do you think Virtual Currencies are useful and worthwhile?

 

steve@bicknells.net