Uncategorized

Argentinian Central Bank Warns of Digital Currency Risks

Jayanand Sagar | May 29, 2014 | 11:15 am
Uncategorized

Argentinian Central Bank Warns of Digital Currency Risks

Jayanand Sagar | May 29, 2014 | 11:15 am

Despite what seems to be a promising bitcoin ecosystem developing in South American, the Argentinian Central Bank has gone ahead and issued a warning on the perils of getting involved with digital currencies — the biggest of which being bitcoin.

The warning makes reference to issues that have long been discussed by central banks. Digital currency is most certainly not backed by any central authority (by design), and as such, aren’t considered to be legal tender.

Despite that, merchants are still finding themselves tremendously interested in the promise that bitcoin holds. No excessive fees that chomp into revenue, and no opportunity for a middle man to screw things up.

And what would a digital currency warning be if the threat of criminal activity wasn’t mentioned?

The Central Bank discusses the possibility of using digital currency to possibly finance crime and its use to facilitate money laundering, because you know, this can’t be done with traditional currency in its physical form.

The warning goes on to mention the history of volatility when it comes to digital currencies, which is rather ironic considering the Argentinian peso is volatile itself.

Inflation of the national currency by some estimates have reached one hundred percent, which has started making bitcoin an attractive solution for many citizens in the country.

At the end of the day, however, it is the central bank’s duty to protect the national currency.

You can find a list of countries that have issued warnings on bitcoin and their stance on digital currencies on BitLegal.

[textmarker color=”C24000″]Source[/textmarker] CoinDesk

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