Central bankers fear cryptos could cost them control of the world

Section:

Bubble or Breakthrough? Bitcoin Keeps Central Bankers on Edge

By Francesco Canepa
Reuters
Monday, November 27, 2017

FRANKFURT, Germany -- Central bankers say the success of bitcoin and other cryptocurrencies is just a bubble.

But it keeps them awake at night because these private currencies threaten their control of the banking system and money supply, which could undermine the monetary policies they use to manage inflation.

With bitcoin smashing through the $8,000 level for the first time this week after a 50 percent climb in eight days, they are also worried they will be blamed if the market crashes.

This is why several central banks are advocating regulations to impose control. Others are even looking at whether to introduce their own digital currency and are testing payment platforms.

"The problem with bitcoin is that it could easily blow up and central banks could then be accused of not doing anything," European Central Bank policymaker Ewald Nowotny told Reuters.

"So we're trying to understand whether bank activity in relation to cryptocurrency trading needs to be better regulated." ...

... For the remainder of the report:

https://uk.reuters.com/article/uk-bitcoin-cenbank-banks/bubble-or-breakt...



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