Carl-Ludwig Thiele, from the Bundesbank, told the Financial Times that the currency is highly speculative due to the way that is constructed and its high volatility.
The board member of Germany’s central bank fears that the users of this currency might lose all of their money, since there is no state guarantee behind it. Other officials are also worried of illegal activities, such as money laundering, which might be done using bitcoin.
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His announcement follows the views of other central banks that expressed concern about the digital currency. The European central bank warned that transactions in bitcoins are not protected by any refund rights, while the central bank of France and the central bank of Malaysia also made negative remarks on the currency. The central bank of China went as far as banning banks from using it.
Some central banks do not see the digital currency as a threat. Ben Bernarke, the chairman of the Federal Reserve, said about bitcoin that “there are also areas where they may hold long-term promise”. Moreover, the ECB concluded that it does not pose a risk to price stability if its emission is controlled.