The European Central Bank Has a Long History of Digital Currency Skepticism

European_Central_Bank_041107European_Central_Bank_041107According to European Central bank Governing Council member Erkki Liikanen, Bitcoin “isn’t subject to the most basic principles governing payment systems,” such as know-your customer, and this is “problematic.”

According to Liikanen, Bitcoin’s “continuity of operations and contingency planning are problematic,” and fluctuations in Bitcoin value “impose additional costs”

The Governing Council Member claims payment systems must meet five criteria, including technical efficiency, accessibility and non-discrimination, efficient cost-based pricing, operational stability with contingency plans in case of problems, and international compatibility.

Liikanen says no new virtual currencies meet these standards, stating “there’s again a risk that future payment systems will become fragmented with the emergence of new payment methods. It would be better to set the harmonized guidelines before this fragmentation actually happens.”

Liikanen, who also heads the Bank of Finland, made the comments at a speech in Helsinki. The Bank of Finland ruled in January 2014 that Bitcoin is a commodity, not a currency.

The statements

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