What Central Banks Around The World Thinks About Bitcoin

With people waking up to the Bitcoin revolution, bankers scattered across the globe just can’t shy away from this phenomenon any longer. Thus even when UBS is cautious, Deutsche Bank is dismissive, European Central Bank thinks of it as unimpactful and Swiss National Bank is extremely worried about the state of events which the Bitcoin saga will unfurl, they just cannot stay ignorant of its massive potential any longer.

Also Read: European Central Bank Does Not Considers Bitcoin As Risky

Russian banker Herman Gref of Sberbank stated that:

“Virtual currencies are a natural outcome of blockchain technology. We may ban them, we may welcome them. It is trendy to urge people not to play with them. But they are a fact of our life.”

Russia has since the very beginning been extremely hostile in dealing with cryptocurrencies. The Russian officials had even suggested state-backed crypto projects for taming the ever-growing enthusiasm. Mr. Gref added that, “Protectionism is just the first reaction of the state. However, both the institution of private money and the states, which will dare to change the way currency is issued, will eventually find a place for cryptocurrencies in the economy.”

This was for sure an exceptionally philosophical outlook coming from someone holding a similar position.  The Moscow based Sherbank is the largest in Russia . The comments given by Mr. Gref were categorized by Russia Today as of an advisory nature for not banking Bitcoins. The state-owned bank official also pointed out that, “blockchain is a gigantic opportunity for businesses, including small enterprises.”

Also Read: Russia to launch it’s own Cryptocurrency called CryptoRuble

Ulrich Stephan of Deutsche Bank was a little bit more skeptical in his comments wherein he announced that he, “would simply not recommend this to the everyday investor.”

He warned people about the massive volatility associated with Bitcoins. This Germany based bank ranks in the 16^th position on a global scale. The comments made by Ulrich Stephan were in sync with Axel Weber of UBS who stated that, “At this point, I‘m very cautious about bitcoin as an entity.”

On the other hand, an analyst at the Deutsche Bank recommended Bitcoin and said, the end of fiat currencies is near.

The Sweden officials are trying to bring about “E-krona” which shall be backed by the central bank. Riksbank stated that this new module, “would have the potential to counteract some of the problems that could arise on the payment market in the future.”

Thomas Jordan, the Chairman of Swiss National Bank explained that, “Central banks are working on this [the issue of crypto currencies] very intensively. It is important to say it is not question of technology, but a question of who has access to central bank money and in what form. There are up to now many unsolved questions.”

Also Read: A Swiss Bank To Sell Cryptocurrencies Such as Ethereum, Litecoin and Bitcoin Cash

When the question of Bitcoin arises, most Euro bankers think of central banking as the most viable option. Mario Draghi belonging to the European Central Bank has dismissed this decentralized currency in its entirety and warned people stating that, “we think that all this is pretty limited. So it’s not yet something that could constitute a risk for central banks.” 

The stance taken up by bakers scattered worldwide on dealing with Bitcoins was best summed up by BNP Paribas of France having a global ranking of 8^th. The bank said that, “The potential threat to central bank seigniorage [the profit a government makes from issuing currency], worries about money laundering, financial stability, tax avoidance and crime, all make regulatory moves elsewhere possible.”

Bitcoiners believe that the crypto skeleton will retain its powers as long as it stays decentralized without any central authority breathing down its neck. But the French bank believed that the treat associated with illegal activities entered into by banking on Bitcoin shall be slowed down once a central regulatory body is established.