EU released a report on Virtual Currencies and their future
The Policy Department for Economic, Scientific and Quality of Life Policies has issued the report “Virtual currencies and central banks monetary policy: challenges ahead”.
According the report, Virtual currencies are a contemporary form of private money. Thanks to their technological properties, their global transaction networks are relatively safe, transparent, and fast. This gives them good prospects for further development. However, they remain unlikely to challenge the dominant position of sovereign currencies and central banks, especially those in major currency areas. As with other innovations, virtual currencies pose a challenge to financial regulators, in particular because of their anonymity and trans-border character.
In April 2018, there were more than 1,500 Virtual currencies; however, only a few recorded meaningful market turnover and capitalisation. Bitcoin, the first Virtual currency, created in 2009, remains a leader among them.
Virtual currencies are a contemporary form of private money, which was largely absent from economic life in the 20th century. Thanks to employing Blockchain technology (which may also be used in the financial industry for other purposes), the transaction networks of Virtual currencies are relatively safe, transparent, and fast. Unliketheir 18th and 19th century paper predecessors, Virtual currencies are used globally, disregarding national borders.
Read the full Report HERE
Source: European Parliament
