Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crypto Prices Fall as BIS Urges Central Bank To Study Digital Currency Risks

Published 03/13/2018, 12:38 AM
Updated 03/13/2018, 12:38 AM
Cryptocurrencies’ price fell on Tuesday

Cryptocurrencies’ price fell on Tuesday

Investing.com – Cryptocurrencies’ price fell on Tuesday as a report by the Switzerland-based Bank for International Settlements (BIS) said digital coins remain far too risky to be used as legal tender any time soon.

Bitcoin was trading at $9,243.2 by 11:38pm ET on the Bitfinex exchange, down 1.8% over the previous 24 hours.

Ethereum, the world’s second largest cryptocurrency by market cap, was down 1.1% at $704.56 on the Bitfinex exchange.

Ripple’s XRP token slipped 1.6% to $0.78460 on the Poloniex exchange.

Meanwhile, Litecoin was trading 3.5% lower at $178.48.

BIS’s report on Monday gathered attention as it said digital coins could potentially be issued by policy makers for tasks including settling payments among financial institutions in the future, but at the same time such virtual currencies might destablize traditional lenders, and that central banks must study the risk and rewards on such new form of money.

The BIS also highlighted that digital currencies could fall victim to illegalities, either as a direct target or a means of transaction.

“General-purpose central-bank digital currencies could revolutionize the way money is provided and the role of central banks in the financial system, but these are uncharted waters,” said Benoit Coeure, a European Central Bank board member who chairs the BIS Committee on Payments and Market Infrastructures.

Coeure added that a lot more experiments and experience are required before central banks could even consider issuing their own digital currencies, generally known as CBDCs.

The BIS then concluded although digital currencies and their underlying technologies have the potential to make settlement of securities and derivatives transactions more efficient, the proposals so far look too similar and not clearly superior to the existing ones.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.