The European Banking Authority (EBA), a group dedicated to the effective and consistent regulation and supervision of banking across the European sector, issued a report on Friday, July 11 publicizing the organization’s stance on the crypto-currency. The 46-pag report entitled, “Opinion on ‘Virtual Currencies,’ not only listed the 70 key risks associated with digital currencies, but also the benefits of Bitcoin. And so, while many media outlets reported coming away with the image of Bitcoin as a potentially dangerous, should-be-avoided matter, many others, such as Forbes Magazine, saw the report as a supporter of the currency.
Such benefits include improvements in speed and costs, which have the potential to aide in European economic recovery and benefit individual consumers and institutions as a whole. Furthermore, digital currencies may increase efficiency and lower prices of the global remittance market. According to Forbes, it seems EU regulators primarily desire to maintain a wall between virtual and fiat currencies, suggesting that while the EU may not be ready to fully accept Bitcoin, it has not denied it either.
While most nations seem to remain cautious, the report allows powerful central powers to seriously embark on a discussion of regulations and prospects surrounding digital currency. The increasing acceptance by retailers, as well as attempts for open dialogue, allow parties to fully consider the potential risks of both accepting the crypocurrency, as well as denying it.
Read more here- “Paranoia Muddies Media’s View of Bitcoin’s Potential,” (Ulf Gartzke and Steve Ehrlich, Forbes)
Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.