Though it should not sound something that cannot be believed, particularly, after warnings being issued by several central banks of various countries including China, India and others, it is important to note that the warning issued by the Bank of Italy also warns about the lack of any mechanism to address the issues faced by the investors who lose their investment.
Now, Bank of Italy has become just another central bank in the world that has issued a warning against Bitcoin investment. Sounding the warning alarm to those who may be inclined to buy, invest in it, or use as, well, a currency, Banca d’Italia said that at the European level, there has been a widespread consensus on whether to establish a harmonized framework in the field of virtual currency.
Italy’s Central Bank in a recently-released statement, cautioned the investors and customers that Bitcoin and other digital currencies are not financially stable. The agency also says that Bitcoin and other digital currencies are not legal tender, and offer no protection to those who use them or invest in them.
In fact, the Central Bank of Italy went to extent to claim that Bitcoin has the potential to be used for illicit activities. It said that currently, in case of loss of units of Bitcoin such as theft from hackers, closure of the exchange platforms at which they are held, users are free of forms of protection.
Warning Does Not Mean End of the Road for Bitcoin in Italy
Although the warning sounds stiff, it looks the use of Bitcoin remains permitted in Italy, provided the investors and stakeholders think it is worth a risk. From the recent trend it looks as if issuing such warnings has become a formality for central banks and it is up to the stakeholders to take them seriously or reject them on their own peril.
Not just central banks of the countries but also several entities, economists have been sending alarm waves; however, these don’t seem to have any impact on the ones who believe that Bitcoin is like the Internet, which is going to transform the way but facing resistance from conventional organizations and people.
The warning from the Central Bank of Italy came at a time when Italian companies remain financially vulnerable as risks ranging from low inflation to shifts in foreign investment could threaten economic growth.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org