Bitcoin is probably the most disruptive innovation of this century. As the decentralized cryptocurrency continues to revolutionize the global financial system, the European Central Bank has started to feel the heat. In a recent statement, ECB has asked lawmakers in the European Union to tighten the regulatory screws around Bitcoin and other digital currency to save itself from losing control over the financial system.
The ECB’s statement on Bitcoin and virtual currencies was part of the legal opinion published earlier today. In the document, the central bank has made it clear that it doesn’t want EU institutions to promote the use of virtual currencies as they don’t have a clear legal status in the region. However, the statement seems to be in direct contradiction to various rulings by the European Court of Justice which has on many occasions extended Bitcoin privileges similar to those enjoyed by fiat currencies.
Many EU nations have a favorable outlook towards Bitcoin and its underlying technology. The increasing adoption of virtual currencies in recent days stands proof of the digital currency’s growing popularity in the region.
ECB’s statement reads,
“The reliance of economic actors on virtual