Deutsche Bundesbank doesn't plan to issue state-backed cryptocurrency

Bundesbank representative declined in the interview the possibility of EU-backed cryptocurrency
25 December 2017   413

Recently Mr. Thiele, representative of Deutsche Bundesbank (Buba), said during the interview, that the cryptocurrency analogous to EU cash is currently not in sight.

Bundesbank is the Germany's central bank. It's one of the main banking institutions of the European Union and even European Central Bank is patterned after Buba in its internal structure. So, their pull in EU banking system is significant, to say the least. And now, this interview puts on hold any rumors about any EU-backed cryptocurrency available to general public.

Mr. Thiele has been Buba board member for seven years and specializes in payment systems and currency. Also he was a Bundestag representative for two years. And now he acts as a spokesperson for the German central bank.

Previously he stated that while he doesn't directly discourage public from investing into cryptocurrencies, but he has to show people the risks involved. In his opinion, the inefficiency, the price and the power requirements of transactions in the Bitcoin blockchain make it unsuitable as a payment mechanism. Besides, in the same interview, he said that Bitcoin can't be used for value storage because of its value fluctuations.

Still, while the general public wouldn't be able to boast having official EU crypto, Mr. Thiele mentioned, that inter-bank payment settlement will be possible in the future through government-sanctioned blockchain.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   137

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.