Cryptocurrencies pose no threat to Romania's economic stability - c-bank

Cryptocurrencies pose no threat to Romania's economic stability - c-bank License: CC0 Creative Commons

BUCHAREST (Romania), February 6 (SeeNews) - Romania's central bank said on Tuesday that cryptocurrencies are not threatening the country's financial stability but warned of the high risks associated with trading virtual coins.

"The National Bank of Romania will continue to monitor the development of virtual currency schemes with a focus on the potential risks to the financial system, noting that at present, due to very small volumes, these schemes do not pose a threat to Romania's financial stability," the central bank said in a press release stating its position in relation to the virtual currencies.

BNR said the population is increasingly interested in virtual currencies, especially in the Bitcoin, both in terms of holding and trading them, and as a business. Due to the lack of regulation and supervision of global currency schemes and their diversification, financial and reputational risks at the holders' level have increased, it added.

Given the recent exponential growth of the price of most virtual currencies, and the very wide fluctuations recorded over very short periods, the BNR said it classifies virtual coins, such as Bitcoin, as highly speculative and risky assets.

In its capacity of supervisory authority, BNR also said that it discourages any involvement of credit institutions in virtual currencies schemes, including providing services to entities offering investment or trading services based on these currencies.

One Bitcoin sells at $7,111.58 on Tuesday, up 2.58% from Monday, according to data from virtual coins news portal Coindesk. An Ethereum sells for $718.67, while a Litocoin sells for $129.81.

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