The Czech National Bank guarantees that the encrypted currency does not threaten the traditional banking system


nnnIn the wake of the heat in the Czech Republic, the Czech central bank said Bitcoin would not threaten the traditional monetary system and the banking system. Because bitter currency prices are unstable, will lead to instability in purchasing power, not suitable for payment and billing functions. And the supply of Bitcoin is constant, and the money supply can not be adjusted according to the market demand.n
nnTranslation: Annie_Xun
nThe National Bank of Canada (CNB) claims that encrypted currency such as Bitcoin does not threaten the traditional banking system. Bank statement “Do not be afraid of Bitcoin” (Do not not afraid of Bitcoin) said that the currency is still the most suitable for business. Banks say currency price stability makes it most useful, but Bitcoin is not bad and does not threaten the banking system.n
nBitcoat rose in Prague and the Czech Republicn
nThe statement is intended to address the prevalence of Bitcoin in Prague and throughout the Czech Republic. The document mentions a large number of digital currency users and supporters in Prague, but insists that Bitcoin can not replace or eliminate traditional monetary systems.n
nThe bank also said that the “size and scope of the virtual currency used in the country is negligible,” and “global bit-based electronic transactions are only 16% of electronic transactions through Czech krona.”n
nThe bank explains that the basic problem with the use of Bitcoin is the constant purchasing power of change. Its volatility reduces currency payments and transaction settlement functions.n
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nThe importance of price stability in the marketn
nBanks say price stability is the most advantageous feature of the existing currency form. In order to maintain price stability and the relatively constant purchasing power of money, the money supply must be able to grow or decrease according to demand.n
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nWhy Bitcoin is not a good mainstream currency commodityn
nThe bank also explains why Bitcoin is not a good mainstream currency commodity. Because the digital currency prices continue to change, will lead to instability in purchasing power. The bank concludes that the existing monetary system will not be replaced by any constant supply of currency, such as Bitcoin.n

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