United States: Privacy worry
The Federal Reserve's inquiry into cryptocurrencies is in its beginning days and they have not been very excited about the idea of a central bank issued answer to bitcoin. Jerome Powell, a board member and chairman nominee, said that technical problems stayed with the technology and governance and risk management will be crucial. Powell said that there were purposeful challenges to a central bank cryptocurrency, that privacy issues could be a challenge and private sector options might do the job. 
Photo: Facebook
United States: Privacy worry The Federal Reserve's inquiry into cryptocurrencies is in its beginning days and they have not been very excited about the idea of a central bank issued answer to bitcoin. Jerome Powell, a board member and chairman nominee, said that technical problems stayed with the technology and governance and risk management will be crucial. Powell said that there were purposeful challenges to a central bank cryptocurrency, that privacy issues could be a challenge and private sector options might do the job. Photo: Facebook
Euro area: Tulip-like
The European Central Bank has frequently warned about the dangers of investing in digital currencies. Vice-president Vitor Constancio said in September that bitcoin is not money but rather a tulip referring to the 17th-century bubble in the Netherlands. They have also warned of bitcoin's fickle value and the links to tax evasion and crime create big risks. President Mario Draghi said that in November the effect of digital currencies on the euro-area economy was restricted and they posed no danger to central banks; holding on money.
Photo: Facebook
Euro area: Tulip-like The European Central Bank has frequently warned about the dangers of investing in digital currencies. Vice-president Vitor Constancio said in September that bitcoin is not money but rather a tulip referring to the 17th-century bubble in the Netherlands. They have also warned of bitcoin's fickle value and the links to tax evasion and crime create big risks. President Mario Draghi said that in November the effect of digital currencies on the euro-area economy was restricted and they posed no danger to central banks; holding on money. Photo: Facebook
China: Condition s ripe
China has made it clear that the central bank has full command over cryptocurrencies. A research team was created in 2014 to develop digital fiat money, the People's Bank of China thinks that the conditions are ripe for it to accept the technology. But the bank has cracked down on private digital issuers prohibiting the exchange trading of bitcoin and others. While there is no formal start date for establishing digital currencies, authorities say going digital could help boost payment adeptness and allow more precise control of currencies.
Photo: Facebook
China: Condition s ripe China has made it clear that the central bank has full command over cryptocurrencies. A research team was created in 2014 to develop digital fiat money, the People's Bank of China thinks that the conditions are ripe for it to accept the technology. But the bank has cracked down on private digital issuers prohibiting the exchange trading of bitcoin and others. While there is no formal start date for establishing digital currencies, authorities say going digital could help boost payment adeptness and allow more precise control of currencies. Photo: Facebook
United Kingdom: Potential revolution
Mark Carney, the governor of the Bank of England, has called cryptocurrencies a part of a potential revolution in finance. The central bank began a financial technology accelerator in 2016, a Silicon Valley method to nurture young companies. Carney said that technology based on blockchain, the distributed accounting database, shows great promise in allowing central banks to strengthen their defences against cyber attack and redo the way payments are made between institutions and consumers. He has however forewarned the BOE is still far away from devising a digital version of the sterling. 
Photo: Facebook
United Kingdom: Potential revolution Mark Carney, the governor of the Bank of England, has called cryptocurrencies a part of a potential revolution in finance. The central bank began a financial technology accelerator in 2016, a Silicon Valley method to nurture young companies. Carney said that technology based on blockchain, the distributed accounting database, shows great promise in allowing central banks to strengthen their defences against cyber attack and redo the way payments are made between institutions and consumers. He has however forewarned the BOE is still far away from devising a digital version of the sterling. Photo: Facebook
India: Not allowed
The central bank of India is against cryptocurrencies given that they can be an avenue for money laundering and terrorist financing. However, the Reserve Bank of India has a group analysing whether digital currencies that are supported by global central banks can be used as legal tender. Presently, the use of cryptocurrencies is in breach of foreign-exchange rules.
Photo: Facebook
India: Not allowed The central bank of India is against cryptocurrencies given that they can be an avenue for money laundering and terrorist financing. However, the Reserve Bank of India has a group analysing whether digital currencies that are supported by global central banks can be used as legal tender. Presently, the use of cryptocurrencies is in breach of foreign-exchange rules. Photo: Facebook
Russia: Pyramid schemes
The central bank in Russia has conveyed apprehensions about future risks from digital currencies, with Governor Elvira Nabiullina saying "we don't legalise pyramid schemes" and "we are totally opposed to private money, no matter if it is physical or virtual form". Meanwhile, the Bank of Russia chooses to delay a choice on managing the financial instruments unless President Vladimir Putin pushes for actions sooner. The central bank will work with prosecutors to stop websites that allow retail investors to use bitcoin exchanges according to deputy governor Sergey Shvetsov. 
Photo: Facebook
Russia: Pyramid schemes The central bank in Russia has conveyed apprehensions about future risks from digital currencies, with Governor Elvira Nabiullina saying "we don't legalise pyramid schemes" and "we are totally opposed to private money, no matter if it is physical or virtual form". Meanwhile, the Bank of Russia chooses to delay a choice on managing the financial instruments unless President Vladimir Putin pushes for actions sooner. The central bank will work with prosecutors to stop websites that allow retail investors to use bitcoin exchanges according to deputy governor Sergey Shvetsov. Photo: Facebook
DURBAN - Central banks across the world are seeing the growing potential advantages and the disadvantages of digital currencies like bitcoin.

So what is bitcoin? It a new currency called cryptocurrency that was created in 2009. It can be used to buy or sell items from people or companies that take bitcoin as payment. 

Members of the global economy have two sets of issues to address; the first is what to do, if anything, with the emergence and growth of private cryptocurrencies. And the second is whether or not to issue official versions. 

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Various central banks across the world differ in their opinions of Bitcoin. Some think that it is a pyramid scheme while another thinks that bitcoin can cause a revolution in the world of money. 

We've attached a gallery of what the different central banks of the world think about bitcoin. 


- BUSINESS REPORT ONLINE