Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Bank of France Adds to Bitcoin Warnings

12/05/2013 | 12:56pm US/Eastern

PARIS--Holders of the virtual currency bitcoin are open to financial and legal risks, the central bank of France said Thursday in a report that identified flaws in the unregulated currency.

"Even if bitcoin does not today meet the conditions to become a credible means for investment that could therefore threaten financial stability, it represents a clear financial risk for those that hold it," the Bank of France said in the report

The central bank said the us of bitcoins as an investment tool is limited because there is no underlying asset and the virtual currency is subject to high volatility. Speculators are also at risk, the bank said, as they would have no legal recourse if they are victims of theft from hackers, and could be caught out if nobody wants to buy their bitcoins.

"The system can collapse at any moment if investors want to unwind their positions but find themselves holding portfolios that have become illiquid," the report said.

The report also said the risks mean there is little-to-no reason for retailers to accept the currency, apart from as a means of self-promotion.

The report coincides with a statement from the People's Bank of China, which said it doesn't consider bitcoin to be a real currency and financial institutions should not provide bitcoin-related business services.

Beyond the risks to investors, retailers and speculators, France's central bank, like China's, also flags the dangers of bitcoin as an anonymous currency that can be used for illegal activities, including money laundering and terrorism.

Write to William Horobin at william.horobin@wsj.com

React to this article
Latest news
Date Title
02:08p NSVRC, 'The Hunting Ground' partner to promote Sexual Assault Awareness Month
02:08p RESEARCH AND MARKETS : Indonesia Tyre Market Forecast and Opportunities, 2020
02:07p Z TRIM : Management's Discussion and Analysis of Financial Condition and Results of Operation. (form 10-K)
02:07p MECKLERMEDIA : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K)
02:07p DEUTSCHE LUFTHANSA : Chicago Tribune Ed Perkins column
02:07p COLUMBUS MCKINNON : Get Genuine Columbus McKinnon Hoist Parts with the New Parts Star(TM) Program
02:07p HOUSES OF OIREACHTAS : Agriculture Committee hears progress on animal health from AHI
02:07p Specialty Fireplace Door Manufacturer Design Specialties Plans Growth With Resources From New Ownership Group
02:06pDJU.S. Government Bonds Set for 5th Straight Quarterly Gain
02:06pDJIran Calls for Talks on Yemen
Latest news
Advertisement
Hot News 
BERKELEY MINERAL RESOURCES : Progress Update
SHI WANG : Ergomed Opens Office in Taiwan
SERABI GOLD : Audited Results for the year ended 31 December 2014
MR BRICOLAGE : Profile: veronique laury
NORTHERN INVESTORS : 31 March 2015 - Result of General Meeting
Most Read News
01:01a LEONTEQ : Avaloq, DBS, Leonteq and Numerix join forces to create innovative platform for structured products
06:15a INMARSAT : Airbus Defence and Space partners with Spectra for tactical radio extension service; New satellite communication ability extends radio networks reach to remote locations
06:12a CLEARONE INCOPRORATED : INC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K)
06:12a IDOX : What technology brings to health and social care: a case study of Calderdale and Idox
06:12a NIPPON STEEL & SUMITOMO METAL : International Crankshaft, Inc. Wins Its First General Motors “Supplier of the Year” Award
Most recommended articles
02:06pDJU.S. Government Bonds Set for 5th Straight Quarterly Gain
02:06pDJIran Calls for Talks on Yemen
02:04pDJMore Companies Block Staff from Suing
02:00p BERKSHIRE HATHAWAY : Automotive looks to expand in U.S.: chairman
01:56pDJCanada Weighs Joining Chinese-Led Infrastructure Bank
Dynamic quotes  
ON
| OFF