Dutch Central Bank: Bitcoin 'No Viable Alternative' to Fiat Currency
The Dutch central bank, De Nederlandsche Bank (DNB), has issued a warning on digital currencies such as bitcoin, saying that they "are unlikely to become a viable alternative for traditional currency in the foreseeable future". Recognising that digital currencies fall outside the bank's scope for regulation, the statement on the DNB website warns: "There is also no security in respect of funds received, ie no guarantee that balances will be returned following bankruptcy, and outstanding payments will be executed. No-one monitors whether virtual currency institutions have sound and....
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To some people, the question will always remain why Bitcoin is a better alternative compared to government-controlled fiat currencies. While there are many answers to that question, the most obvious reason is to circumvent capital control and a collapsing fiat currency. Throughout the years, Bitcoin has provided exactly that to citizens in need of moving funds out of a country during economic woes. After all, Bitcoin is financial freedom, whereas fiat currency is a master-slave relationship. In the Western world, capital control is more exception than a rule, although the Greek population....
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