Literally every central bank now warns against dangers of Bitcoin

in Currencies

central bank bitcoin dangers

Despite what the internet rumors and cryptocurrency portals tell you about how Russia, Japan, US, Korea or other random country will adopt Bitcoin soon, it’s not true and in fact, it is quite opposite. This wishful thinking is utter fallacy, because no government wants to dabble in intangible virtual coins mined in chinese server sweatshops, used mainly to pay ransom for cyber crimes. I compiled list of warnings that are popping up everywhere and that were issued by central banks, financial regulatory authorities and Ministries of Finance just last months. Now almost every government warns about Bitcoin (and other cryptos), with new countries joining each new day. Here’s what central banks and regulatory authorities were trying to told you about virtual online coins in recent weeks:

Singapore: Monetary Authority of Singapore (MAS)

“The risk of a sharp reduction in prices is high. Investors in cryptocurrencies should be aware that they run the risk of losing all their capital.”

Denmark: Denmark’s Central Bank:

Bitcoin investing is “deadly”

Australia: Australia’s s central bank

Bitcoin is a “speculative mania”

New Zealand: New Zealand’s central bank

Bitcoin is “classic case” of a bubble

United Kingdom: Britain’s Financial Conduct Authority

Issued several warnings about the risks of investing Bitcoin

Poland: Financial Supervision Authority

Issued an official warning against Bitcoin, Litecoin and other cryptos

Japanese Finance Minister Taro Aso

“Bitcoin had not been proven as a credible currency”

United States: SEC – Securities Exchange Commision – This one is juicy:

  • “Bitcoin might be a Ponzi scheme”

  • “Bitcoin users may be targets for fraudulent or high-risk investment schemes”

  • “Bitcoins are not legal tender”

  • “Bitcoin exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. Bitcoins also may be stolen by hackers.”

  • “Bitcoin does not have an established track record of credibility and trust”

Also: read how SEC already purged some smaller cryptocurrencies http://stockemperor.com/currencies/sec-purges-cryptocurrencies/

India: Reserve Bank of India (RBI)

Bitcoin was not authorised by the RBI and could result in breach of anti-money laundering laws.

Russia: Even Putin in an interview by Russia Today said that he wants to ban Bitcoin altogether, because it’s mainly used to evade taxes, launder money and is a bubble. This mighty Russian overlord and eternal president said that Bitcoin leads to:

“Opportunities to launder funds acquired through criminal activites, tax evasion, even terrorism financing, as well as the spread of fraud schemes.(…) This is the definition of a pyramid.”

China:

ICO trading and cryptocurrency to fiat trading was completely banned.

You can find all these statements in following sources:

https://www.investing.com/news/cryptocurrency-news/bitcoin-slips-below-14000-down-30-percent-from-record-peak-1021969

https://www.investing.com/news/cryptocurrency-news/singapore-central-bank-warns-against-investing-in-cryptocurrencies-1007754

https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-alert-bitcoin-other-virtual-currency

https://cointelegraph.com/news/putin-condemns-bitcoin-calls-for-russian-ban-of-digital-currencie

http://www.nbp.pl/home.aspx?f=/aktualnosci/wiadomosci_2017/ww-pl.html

https://news.vice.com/en_us/article/j5dd98/india-central-bank-bitcoin-warning

https://in.reuters.com/article/india-bitcoin-rbi/rbi-reiterates-warnings-about-trading-in-bitcoins-idINKBN1DZ1T6?feedType=RSS&feedName=topNews

It’s obviously not complete list, because I can’t track every country – but you can see a lot more of this warnings.  Bitcoin is unsustainable and this is what govt’s where trying to tell you: that bubble is popping – possibly now. And one thing is sure: no one can’t say that you haven’t been warned. Many times.

3 Comments

  1. Cryptocurrency threatens banks and governments. They say it’s a crapshoot waiting to happen but will cause that very crapshoot to happen if it does. Perhaps trying to ban exchanges from selling cryptocurrency to the masses, then when the prices tank because of this they’ll point the finger and say we told you so.

      • Tax evasion for one. I’m sure the government would prefer the populace to use it’s own (fiat) currency, and stored at banks, where it can be regulated thoroughly.

        Saying cryptocurrency is “magical internet money” is the same as saying fiat is magical paper money.

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