Another day, another warning on the perils of getting involved with digital currency from a central bank.
This time around it’s the Central Bank of Trinidad and Tobago, who’s issued the following warning on the use of digital currencies, as reported by the print version of the Guardian TT (found here):
Potential users of this product must be aware of the risks involved in investing in virtual currencies as regulators seek to establish appropriate frameworks to ensure the continued safe operation of the payments system and the smooth conduct of monetary policy.
On the topic of regulation, the Central Bank says digital currency like bitcoin will require approval, according to the Quarterly Bulletin December 2013, released Monday, March 17th:
In [Trinidad and Tobago], the concept of virtual currency is somewhat addressed under the framework established for electronic money by the Financial Institutions Act of 2008.
The Act treats with the issueance of virtual currenct as stored value, issues on receipt of funds and accepted as payment by persons other than the issuer. This activity is defined within the context of ‘business of a financial nature’ and requires the approval of the Central Bank.
[source: Guardian TT Business, Print date: 18 March 2014, Page A17]