Commercial Banks May Create Digital Currencies to Overrule Bitcoin, Says New Zealand Bank Group

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Commercial Banks May Create Digital Currencies to Overrule Bitcoin, Says New Zealand Bank Group
Commercial Banks May Create Digital Currencies to Overrule Bitcoin, Says New Zealand Bank Group

The recent month saw the value of Bitcoin dramatically collapsing and retaining back to normal, though with a 46% drop eventually. Since then, the speculations of its end has been commented and debated over many financial platforms. The recent one among others to present its view over this virtual currency was New Zealand Bank Group.

In an interview with TVNZ television, Kirk Hope, chief executive officer of the New Zealand Bankers’ Association indicated the increasing chances of commercial banks to create digital currencies, especially to rival Bitcoins. “If it is not Bitcoin it might be some other type of digital currency that could come into play”, he said. “What I’d say probably is that if it’s not Bitcoin it might be some other type of digital currency that could come into play because Bitcoins’ capped out at 21 million Bitcoins, if you like,” he added further.

Kirk also interpreted the mindset of government over Bitcoins which clearly reflects the havoc this digital currency can make, or is capable to make. He presented Bitcoins as a source that can flourish the unlawful arms and drugs businesses. He blamed the non-traceability of the digital currency that can lead to a raise in type of activities that government is trying to protect. Furthermore, Kirk suggested an anti-money laundering legislation to come in force of 30th of June.

The conclusion which can be taken out from the interview of New Zealand Bankers’ Association’s CEO is that the governments are focusing on the way to trace down and decentralize digital currencies like Bitcoin, probably by introducing a more better option to its people, which is regulative and controllable.

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