ECB Fights Bitcoin

Note from the CEO:  This is really to funny. The ECB (European Central Bank) is urging EU regulators to “curb the growth” of digital currencies. Why? Because they may well lose control of monetary policies (they devise) that they have already lost control of. Meaning, no fancy lunches, ski slope meetings, private jets and (gasp) no jobs. If digital currencies put central bankers on the street it is the greatest thing EVER!

“The European Central Bank (ECB) is not a big fan of virtual money. That is quite an understatement, as the financial institution urges EU regulators to “curb the growth” of virtual money solutions. While there is no indication these pleas will lead to additional regulation in the European Union, it is another example of how the ECB is afraid of losing control. In fact, they have something to fear from Bitcoin and other cryptocurrencies, as they make a central authority such as the ECB somewhat obsolete.

It has to be said, the European Union is quite pro-Bitcoin and cryptocurrency right now. There is no specific guideline on taxing cryptocurrency, nor are there any plans to do so in the near future. But if it is up to the European Central Bank, that situation will need to change sooner rather than later.

The European Central Bank shared the following opinion with Reuters: ‘The reliance of economic actors on virtual currency units, if substantially increased in the future, could in principle affect the central banks’ control over the supply of money … although under current practice, this risk is limited. Thus (EU legislative bodies) should not seek in this particular context to promote a wider use of virtual currencies. Buying goods and services would not be covered by any of the control measures provided for in the proposal and could provide a means of financing illegal activities.'”

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