Hungarian National Bank Considers Virtual Currency Like Bitcoin Risky

Israel wasn’t the only one warning of bitcoin perils on Wednesday. Joining them is The Central Bank of Hungary, which released a statement warning citizens of the risks of getting involved with digital currency like bitcoin.

The national bank warned that virtual currency is susceptible to theft and loss (which many in the community would disagree with that sentiment), and lack of regulatory oversight.

That means that digital currencies are quite obviously not legal tender, nor are they backed. The bank also warned that digital currency tends to be extremely volatile, as has been the case with bitcoin.

Given the [warnings], the Bank warns consumers to be extremely cautious, proceed with caution before such devices are used, for example Bitcoin.

The warnings have become commonplace amongst central banks from around the world due to the ever-increasing popularity of these alternative forms of currency.

A great resource for viewing the legality of bitcoin (and digital currency as a whole) around the world is BitLegal.