Friday, May 26, 2017

Central Banks Refrain From Regulating Bitcoin

Demand Surges As Risk Appears Minimal

Old Fitzroy Pub Accepts Bitcoins

Old Fitzroy Pub is the First in Australia to Accept Bitcoins (Photo: Getty IMages)

With both the popularity and value of Bitcoin soaring (in spite of rapid, fierce price corrections that quickly subside), central banks around the world have taken notice. While some banks feel threatened by what is described as an alternative currency, the central banks around the globe this week were busy making waves in the world of Bitcoin. However, no central bank has outlawed transactions in Bitcoin, although the Chinese central bank this week issued a ruling that the country’s banks shouldn’t get involved in Bitcoin.

This caused another fierce selloff on the major Bitcoin exchanges. Bitcoin proponents welcomed the brief decline as a buying opportunity.

The Wall Street Journal reports:

“While the Chinese government doesn’t officially recognize bitcoin, buyers there are nonetheless helping to fuel a boom in the four-year-old virtual currency. Bobby Lee of BTC China, the country’s largest bitcoin exchange, tells Jake Lee what is fueling the high demand.

Central bankers and regulators around the world are ratcheting up warnings about bitcoin, as prices of the virtual currency soar, more merchants accept it for payment and Bitcoin investors pour money into new bitcoin-related ventures.Officials in China and France and from the European Union voiced their strongest concerns yet about the potential for speculative trading and money laundering in bitcoin and the potential risks for ordinary people using the currency.

At the same time, a currency analyst issued a positive outlook for bitcoin investors, while a university in Cyprus announced it had accepted its first tuition payment in bitcoin.”

Read the full story here>>


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