NumberSix Posted May 31, 2014 Posted May 31, 2014 Argentinian Central Bank Warns of Digital Currency Riskshttp://newsbtc.com/2014/05/29/argentinian-central-bank-warns-digital-currency-risks/Despite what seems to be a promising bitcoin ecosystem developing in South American, the Argentinian Central Bank has gone ahead and issued a warning on the perils of getting involved with digital currencies — the biggest of which being bitcoin.The warning makes reference to issues that have long been discussed by central banks. Digital currency is most certainly not backed by any central authority (by design), and as such, aren’t considered to be legal tender.Despite that, merchants are still finding themselves tremendously interested in the promise that bitcoin holds. No excessive fees that chomp into revenue, and no opportunity for a middle man to screw things up.And what would a digital currency warning be if the threat of criminal activity wasn’t mentioned?The Central Bank discusses the possibility of using digital currency to possibly finance crime and its use to facilitate money laundering, because you know, this can’t be done with traditional currency in its physical form.The warning goes on to mention the history of volatility when it comes to digital currencies, which is rather ironic considering the Argentinian peso is volatile itself.Inflation of the national currency by some estimates have reached one hundred percent, which has started making bitcoin an attractive solution for many citizens in the country.At the end of the day, however, it is the central bank’s duty to protect the national currency.
dsayers Posted May 31, 2014 Posted May 31, 2014 It's funny how the only legitimate cautions for Bitcoin are the same cautions for other currencies. But "don't leave your wallet in a public restaurant" won't scare people into supporting increased State power.
Culain Posted May 31, 2014 Posted May 31, 2014 I like how the Argentinian central bank is warning of bitcoin, has not the economy collapsed practically every decade in Argentina? Obviously their central banks know what they're doing.
Lians Posted May 31, 2014 Posted May 31, 2014 I like how the Argentinian central bank is warning of bitcoin, has not the economy collapsed practically every decade in Argentina? Obviously their central banks know what they're doing. Was about to point out the same but you beat me to it! Indeed, I found the title quite amusing!
st434u Posted June 1, 2014 Posted June 1, 2014 They have no understanding of economics, but that doesn't mean they're wrong on this one. Someone who's clueless can still make a lucky guess every once in a while.
NumberSix Posted June 2, 2014 Author Posted June 2, 2014 They have no understanding of economics, but that doesn't mean they're wrong on this one. Someone who's clueless can still make a lucky guess every once in a while. What is more likely, they are wrong on most things but right about Bitcoin, or wrong on Bitcoin as well.
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