Germany Plans to Ban Cryptocurrency?
The demand and popularity of cryptocurrencies are increasing. Recently we can also see that the prices of bitcoins and other cryptocurrencies have increased significantly. Even though the prices and adoption of cryptocurrency is increasing day by day, there are many people out there who still feel that it is not a good idea to accept cryptocurrency. We did see one of the US congressmen telling how cryptocurrencies were terrible for the local currencies in place and suggested to ban cryptocurrency Now this time it is Germany. The president of Germany’s central bank, the Deutsche Bundesbank, has cautioned the other central banks about the risks in adopting the cryptocurrencies.
Jens Weidmann, the Deutsche Bundesbank president and chairman of the board of the Bank for International Settlements has advised that the adoption of cryptocurrencies would ruin the stability of the economic status of the country during the financial crisis. He has also suggested that accessing and using the cryptocurrencies would produce a negative impact on the balance sheets of the banks by causing the increase in the volatility. He also said that the acceptance of cryptocurrencies would also “fundamentally change the business model of banks.”
Also, the government of Germany did agree to the fact that the country has not seen any “cyber incidents” or any market manipulation that may have occurred in the crypto trading platforms. Earlier this month, US congressman Sherman did tell that with cryptocurrencies in place the value of the dollar would lose it’s value in the international market and was in favor of banning it altogether.
However, other countries are trying to adopt the cryptocurrencies while some of the other countries are still in a dilemma.