The Central Bank of Portugal Warns Users against Bitcoins

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The Central Bank of Portugal Warns Users against Bitcoins

Though Bitcoin is gaining popularity in Portugal as ForexMinute earlier reported that the country is expected to get its first ever Bitcoin ATM, the Central Bank of Portugal has issued warning against it. However, market observers say that it is not new and very much a part of what several central banks from around the world have done so far.

Central banks in various countries like China, Russia, India, Bangladesh and various other countries have issued a warning against the use of digital currencies and asked them to take caution when dealing with them. Like the central bank of Portugal, these banks believe that anonymity and no regulator makes Bitcoin a risky transaction.

According to Portuguese news agency RTP the bank specifically warned about the risks of using virtual coins which comes conveniently close to the time when the country’s first Bitcoin ATM launched in Lisbon today. The most awaited moment for Bitcoiners in Portugal came when the country got its first ever Bitcoin ATM and warning coming next has spoiled the mood.

In its statement the Central Bank of Portugal declares quite controversially that virtual currencies are not safe. The bank cites the fact that Bitcoin and other cryptocurrencies are not supervised or regulated by any entity in Portugal or the European Union, as it were. Though it’s factually true, this is something that makes Bitcoin unique.

Nothing New in the Warning Say Bitcoiners

The announcement from the agency says that Bitcoin and other coins aren’t backed, consumers can lose their money at exchanges, and that they can be used to launder money and finance criminal activities. A lot of fear about the use of Bitcoin in contraband activities has originated from Silk Road, an online store that sold drugs in exchange of Bitcoin.

The statement which has come when Bitcoin Já, the organization behind the launch of the Bitcoin ATM located in a Lisbon theatre announced that it has launched its services to provide excellent an experience for customers. The organization sent some lovely photos today from the launch event to media people and acknowledged that Bitcoin has great future in Portugal.

The Central Bank of Portugal issued the warning in consequence to the launch of the first ever Bitcoin ATM in the country as it realizes that it is the apt time when the users are warned. Though many in Bitcoin ecosystem don’t blame the bank to issue warning as it is its statutory duty to do so, some of them object the language.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com