Ireland’s central bank warned: virtual currency will challenge state sovereignty

Ireland’s central bank warned: virtual currency will challenge state sovereignty


In July 3rd, the 2014 annual BitFin Conference (mainly invited experts exchange, monetary, economic and technological point of view), the Central Bank of Ireland officials Geris Murphy (Gareth Murphy) said. Mentioned the potential threat of digital currency. In addition, Murphy also mentioned the consumer protection, exchange rate policy and payment system and other topics.

Murphy said that the prevalence of digital currency transactions Reduces the price of credit impact of traditional banking . 同时,虚拟货币 Let the country lost a lot of tax . Murphy said: “From the beginning, I think the great development of mobile technology and information technology, in the next few years, changes in the financial services industry.”

In the past 6 years, most of the regulatory policies are aimed at the financial crisis of 2008. This fact tells us that the serious financial crisis — no matter where broke out in the future are unlikely to reproduce. On the contrary, technology driven innovation, pay savings and other new challenges, will become the future regulators need to face the problem.

The Central Bank of Ireland does not admit that bitcoin is a legitimate currency, this means that any use of bitcoin consumers will not get legal protection — if your bitcoin is theft, or trading platform to run away. Murphy believes that if consumers want to trade different goods or services shall be detected by the anti money laundering law. In fact, the total economic activity, is the “Euro denominated economy”, “virtual currency sum plus the economy,” Murphy added, “For the enterprise and regulatory risk, this point (Translator: economic virtual currency) means a far-reaching impact.”

The future, the central bank faces many variables, can be described as “collision” two worlds: one is the economy, the euro denominated a virtual currency economy. This will greatly affect the exchange rate system, monetary policy and credit…… Over the past few decades, which is controlled by the central bank, will be affected.

The coexistence of the two economies of the euro and the virtual currency, the two branches, to promote the internal balance of payment system, commodity supplier, a monetary settlement more choice.”

In the end, according to Murphy – bitcoin virtual currency or other banks, will become the biggest enemy”.

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