{"id":192,"date":"2014-07-07T11:01:00","date_gmt":"2014-07-07T11:01:00","guid":{"rendered":"http:\/\/blog.holytransaction.com\/ireland-central-bank-like-bitcoin\/"},"modified":"2018-02-07T07:51:50","modified_gmt":"2018-02-07T07:51:50","slug":"ireland-central-bank-like-bitcoin","status":"publish","type":"post","link":"https:\/\/holytransaction.com\/blog\/2014\/07\/ireland-central-bank-like-bitcoin.html","title":{"rendered":"Virtual and digital currencies can challenge the sovereignty of states"},"content":{"rendered":"
<\/em><\/div>\n
<\/div>\n
(CoinTelegraph<\/a>) “Virtual and digital currencies can challenge the sovereignty of states,\u201d<\/em> says Gareth Murphy, senior Central Bank of Ireland<\/a>
\nofficial. At a recent digital money conference in Dublin, he mentioned
\nthat rivals are interfering with a bank’s ability to sway the price of
\ncredit for the entire economy. Murphy warned that there might be
\nconsiderable threat to the finances of a country if increasingly more
\ntransactions for services and goods fade away from the tax system due to
\nthe use of crypto currencies such as Bitcoin<\/a>. He added:<\/div>\n
\n

 <\/p>\n

\u201cCentral banks, [out] of necessity, have monopolized the exercise
\nof these functions. Virtual currencies pose new challenges to central
\nbanks\u2019 control over these important functions.\u201d<\/em><\/p><\/blockquote>\n<\/div>\n

Bitfin 2014<\/a> is Ireland’s biggest
\nBitcoin conference. It gathers the brightest minds in finance,
\npayments, banking, and business. The goal is to host fearless debates on
\nthe risks and opportunities involved with decentralized currencies.
\nBitfin (Bitcoin Finance) wants to shape<\/a>
\nthe future of corporate strategy, commerce, and economic policy in the
\ncurrent industry of peer-to-peer digital money. “Bitcoin Finance is the
\ndigital money conference you’ve been waiting for,\u201d the official press
\nrelease reads.<\/div>\n
<\/div>\n
Bitcoin Gaining ground in Ireland<\/strong><\/div>\n
<\/div>\n
Losing confidence in currencies may lead to uncertainty, which can
\ntrigger significant drops in economic activity. The Central Bank has
\nconstantly emphasized that it doesn’t recognize digital currencies such
\nas Bitcoin in Ireland. Nonetheless, those who choose to use Bitcoin<\/a> anyway won’t have consumer protection.<\/div>\n
<\/div>\n
As the Director of Markets Supervision at the Central Bank, Mr.
\nMurphy is well aware that virtual currencies could offer a great option
\nfor people looking to buy and sell different services and goods. He
\nadded that in these circumstances, the anti-money laundering rules will
\nbe thoroughly tested.\u00a0 Failure of settlement infrastructure and
\npayments, or any sort of “financial plumbing,\u201d could have a great impact
\non the country’s economic activity and consumer confidence. Murphy
\nsaid:<\/div>\n
\n

 <\/p>\n

\u201cIn effect, economic activity is the aggregate of domestic
\ntransactions in the \u2018euro-denominated economy\u2019 and the \u2018virtual currency
\neconomy.\u2019\u201d<\/em><\/p><\/blockquote>\n<\/div>\n

Because digital currencies pervade economic activity, major financial
\ninstitutions and banks will most likely feel the effects. Other major
\nfinancial institutions don’t see Bitcoin as a threat to their
\noperations. However, in Murphy’s view, these institutions would be
\nfoolish to have this kind of attitude towards the technology,
\nmentioning:<\/div>\n
\n

 <\/p>\n

\u201cThis is likely to have a profound operational impact on these firms and their regulatory risk profile.\u201d<\/em><\/p><\/blockquote>\n<\/div>\n

Monetary and economic changes<\/strong><\/div>\n
<\/div>\n
In today’s hybrid economy, central banks will have to face a lot of
\neconomic challenges. Digital currencies defy the way these institutions
\ncalibrate exchange rates, monetary policy and set price of credit.
\nSupporting Bitcoin and encouraging its growth would have to be
\nattentively monitored. Gareth Murphy added:<\/div>\n
\n

 <\/p>\n

\u00a0\u201cThe existence of a \u2018euro-denominated economy\u2019 and a \u2018virtual
\ncurrency economy\u2019 raises the prospect of an internal balance of payments
\nbetween two sub-economies where suppliers may prefer one currency over
\nanother as a means of payment (for different goods and services).\u201d<\/em><\/p><\/blockquote>\n<\/div>\n

Virtual currencies – a bank’s worst enemy<\/strong><\/div>\n
<\/div>\n
Most economies function with many different currencies and the USD is
\nthe most frequently used on a global scale. Bitcoin undermines a
\ncentral bank’s ability on matters such as economic analysis, data
\ncollection, supervision, policy formation, enforcement and resolution,
\nso these sort of implications can’t be overlooked.<\/div>\n
<\/div>\n
As far as regulation is concerned, Murphy suggests that Bitcoin
\nshouldn’t take things for granted and assume its actions will keep
\nfalling under US and Switzerland regulations. He did mention that
\nBitcoin should be used to support indefinite innovations that may come
\nfrom a wiser use of the technology:<\/div>\n
\n

 <\/p>\n

\u00a0\u201cWe should not presume that current regulations are
\nfuture-proof. It is possible that further innovations will mean that
\nthese regulations may no longer apply. This suggests that new
\nregulations may ultimately be needed which are based on new legal
\nconcepts with a clear scope which must stand the test of time.\u201d<\/em><\/p><\/blockquote>\n<\/div>\n

Virtual currencies will soon become a bank’s worst enemy, and that’s
\nbecause they’re offering lower fees, commissions, greater convenience
\netc. Bitcoin might gain control over the most important functions of
\nexchange rate and monetary policy. In spite of the currency’s relative
\ninstability, more people are turning their attention to Bitcoin, and the
\nmore publicity it receives the higher chances it has to become
\nubiquitous in our everyday lives.<\/div>\n

Open your free digital wallet here<\/a> to store your cryptocurrencies in a safe place.<\/p>\n","protected":false},"excerpt":{"rendered":"

(CoinTelegraph) “Virtual and digital currencies can challenge the sovereignty of states,\u201d says Gareth Murphy, senior Central Bank of Ireland official. At a recent digital money conference in Dublin, he mentioned that rivals are interfering with a bank’s ability to sway the price of credit for the entire economy. Murphy warned that there might be considerable […]<\/p>\n","protected":false},"author":1,"featured_media":709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,37,274,542],"tags":[704,948,1201],"yoast_head":"\nVirtual and digital currencies can challenge the sovereignty of states -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/holytransaction.com\/blog\/2014\/07\/ireland-central-bank-like-bitcoin.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Virtual and digital currencies can challenge the sovereignty of states\" \/>\n<meta property=\"og:description\" content=\"(CoinTelegraph) “Virtual and digital currencies can challenge the sovereignty of states,\u201d says Gareth Murphy, senior Central Bank of Ireland official. At a recent digital money conference in Dublin, he mentioned that rivals are interfering with a bank’s ability to sway the price of credit for the entire economy. 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