Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  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
04:13p H & R BLOCK : CPD: Self-proclaimed homeless men stole from soldier who bought their meal
04:13pDJU.S. Grains and Soybeans Gain Amid Reduced Crop Outlook -- Update
04:13p IPASS : to Present at the 2015 Aegis Capital Growth Conference
04:12p AEROPOSTALE : BRIEF: Bath & Body Works opens Saturday at Valley Mall
04:12p NIKON : Preserve a great trip with great photos
04:11p SOUTHERN COPPER COR : Change in Directors or Principal Officers (form 8-K)
04:11p COUPONS : Changes Corporate Name to Quotient
04:11p DIAMONDROCK HOSPITALITY : Announces Third Quarter 2015 Earnings Release And Conference Call
04:11p FBR & Co. Announces the Election of Mark R. Patterson to Its Board of Directors
04:11p TRACON Pharmaceuticals Announces Appointment of Ronald Shazer, M.D., M.B.A., as Chief Medical Officer
Latest news
Hot News 
KOFAX : 5 Facts You Need to Know About Mobile
MAX PETROLEUM : Corporate update and Cancellation of admission to AIM
TOMCO ENERGY : Still Faces Long Holliday Waiting For Improved Production System
GWG : Life, LLC Obtains Colorado and Utah Provider Licenses
Most Read News
09:11a RESEARCH AND MARKETS : 2016 Emerging Infectious Disease Tests, and Strategic Profiles of Leading Reagent and Instrument Suppliers
07:29a UK OIL AND GAS INDUSTRY ASSOCIATION : Oil & Gas UK Awards 2015 Finalists Announced
03:28a AQUARIUS PLATINUM LIMITED - Offer by Sibanye Gold Limited
10/05DJAustralia Trade Deficit Widens In August
Most recommended articles
04:10p Heavyweight resource stocks lift TSX
04:06p S&P 500, Nasdaq end down as investors await earnings
04:03p UAW threatens strike at Fiat Chrysler U.S. operations
04:02pDJSibanye Gold to Buy Aquarius Platinum for $294 Million -- Update
04:01pDJFIFTH THIRD BANCORP : in $85 Million Settlement Tied to Faulty Mortgage Loans