Not terribly long following the debut of Ireland’s first Bitcoin ATM at the Hippety’s Café in Dublin’s Temple Bar district comes a warning from the Central Bank of Ireland on the perils of getting involved with bitcoin and other digital currency, according to an Independent.ie report.
The central bank’s sentiments echo what other monetary authorities from around the world have been saying for months now.
Users who purchase digital currency from these so-called ‘bitcoin vending machines’ and by other means are unable to receive the same protections available to those using regulated currencies like the Pound Sterling.
Because bitcoin isn’t backed (the de-centralized nature is one of its selling points), it does indeed pose some risks to the consumer, but many would argue that the benefits of digital currency outweigh the negatives.
Central banks have also cautioned the public about the digital currency’s extreme volatility and potential for abuse (especially in the areas of money laundering and criminal financing).
But for now, Ireland has taken a permissive stance on the use of bitcoin, which many of you would agree is a good thing. [source: The Independent]