Cryptocurrencies are not threats to Central Banks

The European Union (EU) said on Monday that cryptocurrencies should not be considered a threat to Central Banks, or to traditional economies.

Despite the boom that has been the use of virtual currencies in modern markets, these will not have negative consequences for the economic stability of any country.

However, EU representatives did admit that cryptocurrencies are a new element in the economy that is going to have some influence in today’s markets. The different virtual currencies respond to a technological demand.

Economists say that cryptocurrencies are only a means to carry out illegal activities, evade taxes, make money laundering, fraud and purchase of drugs; but thanks to the support of the EU, these assumptions could remain in the past.

The doubts surrounding virtual currencies arose due to the potential they have to compete with those already established in national and global markets.

In April of this year, the total capitalization of the cryptocurrency market was below 300.000 billion dollars, while in the last period of 2017, traditional money in the United States approached 14 billion dollars.

K. Tovar

Source: Chainbits

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