Bitcoin’s Gains May Fuel Central Bank Concerns

Greater demand for virtual currencies could have a negative impact on the reputation of central banks, according to a report published by the European Central Bank in October last year. Since the report was released, bitcoin has risen more than 55 percent against the dollar and use of the currency has surged.

“I think the ECB obviously is concerned, and it’s not reputational,” said Steve Hanke, a professor at Johns Hopkins University in Baltimore who helped to establish new currency regimes in countries such as Argentina and Bulgaria. “I think it’s a competitive threat. Maybe virtual currencies will be so convenient that they will pose a threat because of their ease of use.”

Virtual currencies “could have a negative impact on the reputation of central banks” if their use grows considerably, the Frankfurt-based ECB said in its research paper. “This risk should be considered when assessing the overall risk situation of central banks.”

www.bloomberg.com...

Heh who doesn't like to see the central banks squirming. Bitcoin is developed as an open source project by people from all over the world. This just goes to show that we can fight against their highly corrupt and centralized banking system if we put out heads together. Don't just lay down and accept it... together we can change this world, if only we believe we can. Lies can only last so long, in the end the will of the masses will prevail regardless of what the elite authoritarians want.

reply to post by ChaoticOrder

Its an interesting concept for sure.

But I've found that most of the people who promote bitcoin are generally owners of bitcoin.

Its not much different than Wall Streeters steering everyone into stocks and bonds, they have a direct benefit.

I'm no fan of fiat currency or the Rothschild central banking scheme, but I have to chuckle when owners of the bitcoin start to lecture me on the "pointlessness" of owning gold and silver...

reply to post by gladtobehere

But I've found that most of the people who promote bitcoin are generally owners of bitcoin.

Yes, but what kind of person is going to promote bitcoin if they haven't even tried using it. I used it and I liked it, hence I will promote it by discussing the advantages of it. I post about bitcoin on ATS because we have many people here who can appreciate the way bitcoin works and how it opposes the mainstream banking system, and I like discussing these things. I don't post about it anywhere else except here and the official bitcoin forum.

I have to chuckle when owners of the bitcoin start to lecture me on the "pointlessness" of owning gold and silver...

I've found that most bitcoin users are also gold/silver bugs. They are typically the type of free market people who believe money must be a limited resource like gold. The way bitcoin is designed makes it very similar to gold in almost every way, that's why they are attracted to it. The way it is limited, the way it is mined, the deflationary properties, the inability to create endless amounts out of thin air at no cost... gold and bitcoin share all these properties.