The report said virtual currencies issued for wholesale use only could help make trading securities and foreign currencies more efficient.
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Monday's report from the Bank for International Settlements, an international organization for central banks in Basel, Switzerland, says virtual currencies issued broadly by central banks could worsen bank runs.It said virtual currencies issued for wholesale use only – that is, by banks and financial institutions to settle payments rather than by consumers for purchases – could help make trading securities and foreign currencies more efficient.Everyone else can access money issued by the central bank in the form of cold hard cash.Benoit Coeure, chair of the BIS' committee on payments and market infrastructures, said virtual currencies issued by central banks showed promise in wholesale payments.Coeure said that no central bank has so far decided to issue a virtual currency.
FOLLOW THIS ARTICLE