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The Czech Republic National Bank urges not to be afraid of cryptocurrencies

02 August 2017 21:00, UTC

‘Don’t be afraid of Bitcoin’ – this is exactly how the statement of the Czech National Bank on cryptocurrencies titled. Bitcoin.com retells the opinion of the country’s main financial regulator.

The National Bank rejects the popular stereotypes on potential threats Bitcoin and other cryptocurrencies might contain for fiat money. Banks should not be afraid of anything like this because, the regulator argues, the amount and scale of cryptocurrencies in the world is not large – only 10.5 million people use it, while all Bitcoin electronic transactions make only 16% of the same operations in Czech crones.

Furthermore, the Czech National Bank considers Bitcoin to be unstable because its price is always in turbulence, which shows the lack of stable purchasing power of this cryptocurrency.

The existing Czech finance system, the regulator continues, is based on the fact that the purchasing power of money and its permanent amount change over time, thus being the most beneficial feature of the money as we know it. For that reason, there is not point to worry that the current finance system is going to be replaced by something else.

Nevertheless, the National Bank noted in the same statement: “Prague is home for a strong community of cryptocurrency supporters and users.”