Cyprus joins the worldwide evaluation on Bitcoin and has recently given its input on the digital currency. According to incyprus, the Central Bank and the Ministries of Finance and Commerce have just issued a Bitcoin warning to the public.
Warning Issued Against Bitcoin in Cyprus
The warning was made to highlight the consequential risks of Bitcoin and other digital currencies when they are traded, bought, and sold. Cyprus’ central bank and ministries have said that virtual currencies are unregulated and are not issued or guaranteed by a central bank. This basically means that Bitcoin has no backing which is seen as a risk in this case. Bitcoin, they say, can only be used to exchange products between a limited amount of dealers. This is true, however, the limited amount of Bitcoin vendors is growing rapidly.
Due to the fact that Bitcoin is decentralized, its protocol calls for no governmental involvement. While this may attract many people to Bitcoin, it makes governments and people of higher authority worry about the risks of the digital currency.
Cyprus ministries said that of the dangers of Bitcoin, one may be lose their money on the exchange of the currency. This may be true, however, with any sort of currency there are some sort of risks involved. In addition, Bitcoin has many benefits that can potentially override the risks involved.
Cyprus Central Bank Says Bitcoin Isn’t Illegal
“Bitcoin is not illegal, but at the same time neither is it subject to control or regulation.”
This basically means that Bitcoin isn’t illegal, however, there are still risks involved in dealing with the digital currency.
Regardless of the fact that banks around the world are challenging the legitimacy of Bitcoin, it does not retract from the digital currency’s inherent value. In addition, even though Bitcoin is still fairly recent, it has the potential to become something much bigger than what it is now. With time and further development, Bitcoin can possibly open up the path to further technological innovations and advancements which will benefit the society as a whole.
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