MasterCard: Digital Currency's Risks Outweigh the Benefits
The risks presented by digital currencies far outweigh the benefits, MasterCard has claimed. The global payment processor made these comments in its submission to the UK Treasury's call for information on digital currencies last November. According to the four-page submission, obtained by CoinDesk via a freedom of information request, MasterCard doesn't believe digital currency has many, if any, strong benefits. It attacks claims of digital currency's low transaction costs, low payment processing time and strong system safety. The document reads: "We would argue that, when compared to....
Related News
The Pakistani central bank governor, Reza Baqir, recently revealed that his organization has determined the risks posed by cryptocurrencies “far outweigh the benefits.” The governor, however, suggested that if solutions that address these potential risks emerge, the central bank “is open to looking at them.”
Crypto Said to Have No ‘Real Economic Benefits’ for Pakistan
The governor of the State Bank of Pakistan (SBP), Reza Baqir, recently said his institution had concluded that the potential risks that are associated with cryptocurrencies....
Not terribly long following the debut of Ireland's first Bitcoin ATM at the Hippety's Café in Dublin's Temple Bar district comes a warning from the Central Bank of Ireland on the perils of getting involved with bitcoin and other digital currency, according to an Independent.ie report. The central bank's sentiments echo what other monetary authorities from around the world have been saying for months now. Users who purchase digital currency from these so-called 'bitcoin vending machines' and by other means are unable to receive the same protections available to those using regulated....
Global remittance company MasterCard criticized Bitcoin for presenting risks and lacking benefits. The comments came in a 4-page letter that was written in response to the UK government's Call for Information on digital currencies. It questioned digital currency companies over their claims to provide lower transaction costs, saying that their promises will falter soon upon facing additional cost requirements to comply with certain consumer protection and anti-money laundering laws. The letter said something similar about the digital currency system's low payment processing time and....
Central banks are rushing into digital currencies without considering how the risks might outweigh any benefits, the column argues.
Bitcoin was designed to be a decentralised peer-to-peer payment protocol and one that would fall outside the control of both governments and banks. This, however, has not prevented central banks from voicing their opinion on the digital currency and its potential regulation. Although bitcoin regulation continues to be a contentious subject, some central banks have said it is necessary. Others have assessed the potential costs of regulation and realised that this would not outweigh the benefits. Additionally, institutions have explored both the risks and benefits associated with the use of....