ECB and BIS think Bitcoin is an inappropriate replacement for cash

It has been observed by two foremost policymakers of Europe, that cryptocurrencies like Bitcoin and altcoins are not the answer for enhancement of a cashless society. It was claimed by a report authored by them, that hardly any goods and merchandise are rated in terms of cryptocurrencies, which makes the virtual currencies quite worthless when it comes to making payment. They further added that transaction in Bitcoin is similar to gambling. The report claimed that Bitcoin and the other altcoins are like a mirage, but still, it cannot be denied that cryptocurrency might bring about a revolution in the financial ecosystem. The governing bank of all central banks has shown that the volume cashless payments done in twenty-five chief nations have become twice of its initial value as a share of the GDP, since the change in the century.

The only prevalent way of accessing money in the middle of the street is liquid cash that is sponsored by the centralized banking sector. If the cash disappears, then the economy of that nation will depend entirely on the liquidity of viable banks. As the report says, that a virtual currency of a centralized bank can resolve the risk, but at the same time, it will wreak disruption in the fiscal system and the existent economy. The currency will challenge the existing model of the centralized banking sector that accepts the deposits made by customers to finance the amount of money that individuals borrow from the bank. Besides, a currency like this will not be as anonymous as liquid cash, and as such will lead to money laundering and illegal activities. Apart from this, the centralized banks will be in charge of an unprecedented amount of statistics and information about associated individuals.