Eight years after the first appearance of Bitcoin, central banks around the world increasingly recognize the potential positive and negative aspects of virtual currency.
As central defenders of the global economy, central banks have two issues to address when it comes to virtual currency. Firstly, what should be done before the emergence of virtual currencies, in which Bitcoin is heading for $ 10,000? And second, should the central bank issue its virtual currency?
Here are the views of some central banks around the world about virtual currency in general and Bitcoin in particular:
Federal Reserve (FED): Concern About Privacy
Recently, the Fed began a virtual currency investigation. The biggest central bank in the world is not excited about the idea of a virtual currency issued by the central bank.
Some time ago, Jerome Powell, a Fed governor and nominated by President Donald Trump as the Fed chairman after President Janet Yellen ended his term, said that virtual currency technology still has Technical issues and risk management are very important.
Powell says there are major challenges to a central bank’s currency, which includes security issues. According to Powell, virtual dollars issued by the private sector can solve this problem
European Central Bank (ECB): A Tulip Bubble Can Repeat
The ECB has repeatedly warned of the dangers of investing in virtual currency. ECB vice-president Vitor Constancio said in September that Bitcoin was not a coin, but a “tulip flower” – a tentative warning of a Bitcoin bubble similar to a tulip bloom in the Netherlands. 17th century.
Another ECB official, Benoit Coeure, emphasized that the price of Bitcoin has skyrocketed and that the connection between virtual currency and tax evasion and crime is a major risk. In November, ECB President Mario Draghi said the effect of virtual currency on the Eurozone was limited and posed no threat to the monetary policy of the ECB.
Central Bank OfChina (PBOC): Conditions Are Ripe
China has made clear that PBoC has complete control over virtual currency. With a team set up in 2014 to develop virtual currency, PBoC believes that “conditions are ripe” for them to grasp this technology.
However, over time, Beijing has tightened control over private money issuers and banned virtual currency trading. Although there is no official deadline for the recognition of virtual currency, Chinese authorities say that putting virtual currency into use will improve the efficiency of payments and allow for more accurate control of currencies.
Central Bank OfFrance: Very Cautious
French central bank Governor Francois Villeroy de Galhau said in June that “the French authorities are” cautious about Bitcoin because there is no public institution behind the virtual currency to provide guarantees. Historically, all private money has come to a bad end. Bitcoins even have a dark side, data attacks”.
Central Bank of India (RBI): Not allow
Thinking that virtual currencies can be a money laundering channel and provide financing for terrorism, the RBI opposes this type of property. However, the RBA also has a research team to determine whether virtual currency backed by the central bank can be used as a legal means of payment.
Brazil Central Bank (BCB): Advocate ForCreativity
BCB sees “no immediate risk to Brazilian financial system” from virtual currency, but remains cautious with the evolution of virtual currency, a recent statement said. Despite this, BCB promised, “to support innovation in the financial sector, including new technologies that make the financial system safer and more efficient.”