Cryptocurrencies
Central Banks Urged to Study Digital Currency Risks and Rewards
- BIS warns of destabilizing effect if used by general public
- Regulating crypto currencies to be topic at next week’s G-20
BOE Governor Carney on Regulating Cryptocurrencies
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Digital currencies are a revolutionary tool that central banks should consider, but they remain far too risky to be used as legal tender any time soon, according to the Bank for International Settlements.
The BIS -- the club of the world’s largest central banks -- said in a report on Monday that the new form of money could one day be issued by policy makers for tasks such as settling payments among financial institutions. At the same time, it warned that digital coins might destabilize traditional lenders if offered widely to the general public.