In an official release, the SWIFT Institute announced that interested parties can submit their research paper titled “Virtual Currencies: What Are the Real Risks?” for which they will also get a €15,000 grant. The institute says that although it has been looking for research on recent developments in digital currencies for a long time, it only came up with the proposal recently.
The organization believes that Bitcoin is arguably the most popular digital currency and with increasing usage, virtual currencies are becoming more of a reality. It says that there are Bitcoin ATMs in more than 10 countries worldwide, and the currency is increasingly accepted by mainstream retailers, and in such a situation, it is important to know what the risks are.
Talking to the media, Peter Ware, director of the SWIFT Institute, said that it is a very topical area affecting the global financial industry and the world in general. He admitted that Bitcoin is increasingly discussed at conferences, in the media, at the central bank level, etc. as the curiosity is going up about the digital currency at all levels.
However, according to Peter Ware as for many people, Bitcoin is not a topic that is fully understood, he has tried to put his effort in the form of academic research. He says that the SWIFT Institute is aiming to provide some concrete input to the discussion and help people understand the digital currency and the risks involved in it.
Comprehensive Study to Bring the Risks and Advantages in Digital Currencies in Front
The institute says that there are on average 40,000-80,000 Bitcoin transactions per day and that this is expected to rise further in the next couple of years; however, there is no research done on the risks and advantages from it. The void in such a research prompted the SWIFT Institute to invite research papers from the interested parties.
It expects that research will focus on a number of potential advantages and challenges associated with Bitcoin and other cryptocurrencies. For instance, the paper must provide an answer to what is the net economic impact of virtual currencies and do the lower transaction costs outweigh resources expended in mining.
Similarly, the research paper should address issues like what is the relationship between virtual currencies and real money and how can banks and virtual currencies cooperate? As the research is about the risks from Bitcoin transactions, the research must provide information about the risks involved in using virtual currencies.
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