ECB Officials call for Bitcoin Regulation and Taxes

Yesterday, the Executive Board member of the European Central Bank, Yves Mersch, has stated that Bitcoin threatens economy. Following the news, ECB Officials call for Bitcoin Regulation and Taxes.

4 January, AtoZForex The central European Bank, ECB, has made a major announcement in relation to the cryptocurrencies this Wednesday. The bank has called for EU nations to establish a regulation and taxation norms for Bitcoin. The ECB sees Bitcoin as an object of speculation and a tool for money laundering.

ECB Officials call for Bitcoin Regulation and Taxes

The governing council member of the ECB and the Chief of Austria’s central bank, Ewald Nowotny, has stated:

“One ought to apply what the basic rule is in any other financial transaction: everyone involved should reveal their identity. We need a value-added tax on bitcoin, since it’s not a currency.”

Mr. Nowothy’s remarks reflect those made by other ECB officials that believe that Bitcoin’s spike in value is a bubble. They do not see the cryptocurrency as a digital competitor to the common EU currency that is used by 19 EU nations.

However, the so-called “digital gold” appears as a source of worries for the central bankers. They argue that Bitcoin can allow money launderers to somehow get around the strict rules present in the financial system. Mr. Nowothy has added:

“It can’t be allowed that we’ve just decided to stop printing 500-euro notes to fight money laundering, that we’ve slapped strict rules on every tiny savings club, and then have to watch people blithely laundering money around the globe with bitcoin.”

Will the ECB intervene?

Besides elaborating on the bubble-like nature of the cryptocurrency, Mr. Nowothy further stated that the topic has “reached the heart of society.” According to his comments, how people are asking him whether they should invest in Bitcoin, rather than in gold, as they did before.

Yet, “the central bank would only have to intervene if (bitcoin) were to change people’s behaviour. There are no signs of that yet,” he added.

The ECB official has also noted that wild fluctuations in the price of Bitcoin and its slow transaction speed contribute to the difficulty of the cryptocurrency use for everyday payments.

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