Italian Central Bank Sounds Warning on Bitcoin

Jayanand Sagar | May 2, 2014 | 4:39 pm

Italian Central Bank Sounds Warning on Bitcoin

Jayanand Sagar | May 2, 2014 | 4:39 pm

Yet another international central bank is putting the spotlight on bitcoin by sounding the warning alarm to those who may be inclined to buy, invest in it, or use as, well, a currency.

This time around it’s Banca d’Italia, Italy’s Central Bank.

In a recently-released statement, the central bank cautioned that bitcoin (and presumably other digital currency) are not financially stable, are not legal tender, and offers no protection to those who use it and lose it.

The Central Bank also noted that bitcoin has the potential to be used for illicit activities, which of course applies to cash, too.

“At [the] European level, there has been a widespread consensus on whether to establish a harmonized framework in the field of virtual currency,” the bank said in its statement. “Currently, in case of loss of units of Bitcoin (eg theft from hackers, closure of the exchange platforms at which they are held), users are free of forms of protection.”

Despite the warning, the use of bitcoin remains permitted in Italy, as one would come to expect.

At this point, it’s almost become a formality for central banks to issue these sorts of warnings.

It’s not limited to central banks, either. Here in the United States, a number of States have released consumer advisories on bitcoin. These include California, New Mexico, and Massachusetts.

[textmarker color=”C24000″]Source[/textmarker] La Stampa

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  • FreeJack

    No way…a central bank trying to spread fear and uncertainty about Bitcoin?

    It’s like Barnes and Noble trying to convince people that e-readers cause brain cancer.

  • John Law

    It is their responsibility to warn the general public of a pump and dump financial instrument like Bitcoin. What good is Bitcoin’s volatility to anyone other than traders and speculators? Consumers and retail investors better stay away!

  • This reactionary statement is akin to buggy whip manufacturers decrying the advent of automobiles. And you can use the same bank argument against so called “legal tender” cash because historically not all banks are “financially stable” and undeniably legal tender “has the potential to be used for illicit activities”.

    Banks will be smarter – and richer – if they work to find ways to profit with bitcoin, the first truly international currency.

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