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ECB: Virtual currencies could offer better service than traditional providers – Coindesk

FXStreet (Barcelona) - The CoinDesk Analysis Team, shares the key points of ECB’s report on digital currency, with the central bank describing the virtual currency system as “inherently unstable” but potentially transformative in the realm of payments.

Key Quotes

“The European Central Bank has released a new report on digital currency, describing it as “inherently unstable” but potentially transformative in the realm of payments.”

“The ECB outlined a number of areas in which digital currency development could broadly impact the traditional payments space, noting that defects in the remittance ecosystem could provide an opportunity for the technology to flourish in the long term.”

“The report's authors state that digital currencies like bitcoin, given their cost structures, make the technology a potentially attractive option for both domestic and international remittances.”

“While acknowledging the technological resources required to build such a network, the ECB notes: "...there is major room for improvement, especially in [the remittance] field, and hence a VCS could have the potential to offer a better service than traditional providers (banks, money remitters and informal remittance systems)”."

“The ECB goes on to say that a significant barrier to broader adoption for remittance is the lack of centralized protections for those who opt to use digital currencies.”

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