RBA Governor Says Virtual Currencies May Pose Challenges
Reserve Bank of Australia (RBA) Governor Glenn Stevens says that the advent of virtual currencies just might pose challenges for regulators around the world, given they operate "outside the perimeter" of central bank control. "Devoting a lot of resources to ever greater refinements to the details of existing regulatory structures will not help us," he said with reference to assessing whether or not virtual currency could threaten the stability of the current financial system. Stevens made his comments at the Symposium on Asian Banking and Finance in San Francisco, according to The Daily....
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A new report from the SWIFT Institute has found that fiat currencies are more likely to crowd out digital currencies such as bitcoin. The paper, Virtual Currencies: Media of Exchange or Speculative Asset? [PDF] analyses the dynamic relationship between virtual currencies, such as bitcoin, and fiat currencies. The research looked at whether or not the design and the size of virtual currencies could pose an immediate risk to monetary, financial or economic stability. The paper found that fiat currencies are more likely to crowd out virtual currencies and that the design and size of virtual....