
Subscribe & Follow
Jobs
ECB governor calls for tax, regulation on bitcoin

"One ought to apply what the basic rule is in any other financial transaction: everyone involved should reveal their identity," ECB governing council member Ewald Nowotny told the German daily Sueddeutsche Zeitung.
"We need a value-added tax on bitcoin, since it's not a currency," said Nowotny, who is head of Austria's central bank.
Nowotny's comments echo those by other ECB officials, who regard the bitcoin's spectacular surge in value as a bubble, rather than a sign it could be a digital competitor to the euro single currency used by its 19 member nations.
Nevertheless, the "digital gold" is a concern for central bankers as it can allow money launderers to dodge around increasingly strict rules in the traditional financial system.
"It can't be allowed that we've just decided to stop printing 500-euro notes to fight money laundering, that we've slapped strict rules on every tiny savings club, and then have to watch people blithely laundering money around the globe with bitcoin," Nowotny said.
Bitcoin, launched in 2009, is a virtual currency created from computer code. It and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers.
Bitcoin is perhaps the best known and most popular virtual currency and its value surged as high as $19,500 in December from around $1,000 in January, but has slipped back after a series of warnings from governments and analysts about the risk and volatility associated with cryptocurrencies.
While blasting the cryptocurrency's bubble-like characteristics, Nowotny acknowledged the topic had "reached the heart of society," with people now asking him on the Vienna metro whether they should buy bitcoin, rather than gold as in the past.
But "the central bank would only have to intervene if (bitcoin) were to change people's behaviour. There are no signs of that yet," he said, noting that wild gyrations in bitcoin's value and slow transaction speeds made it hard to use for everyday payments.
Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.zaRelated
No NGOs under investigation for money laundering, terror financing 11 Mar 2025 Capitec's R56m brush with Sarb 27 Dec 2024 Sasfin: Defeated after the scandal on the rot in its foreign exchange business 20 Dec 2024 Nigerian court orders release of Binance executive after charges dropped 24 Oct 2024 Upholding integrity: Anti-money laundering compliance imperatives in real estate 25 Jun 2024 Scandal-ridden Binance in SA court to keep dealings with local minority partner under wraps 24 May 2024
