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Australia: RBA stamps Bitcoin with limited risk to payment systems

Thursday 1 May 2014 18:39 CET | News

The Reserve Bank of Australia (RBA) has issued an official paper informing that Bitcoin is deemed with “limited risk” for the domestic payment system, coindesk.com reports.

The document in question refers to Bitcoin usage as “an inefficient use of resources”, also mentioning that Bitcoin presently faces some challenges in replacing the current payments infrastructure.

Other shortcomings listed by the paper for Bitcoin include the crypto-currency’s inability to accept monetary policy standards, a decrease in revenues as an outcome of the minting of money and the potential threat of affecting the financial system should the digital currency be on sale at large scale due to lack of confidence in it.

The document also signals the notable amount of computing power that is spent in the winner-takes-all race to mine blocks as a negative point, and concludes that the most notable limitation is Bitcoin’s design to stand in the virtual world.
 


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Keywords: Australia, RBA, Bitcoin, digital currency, crypto-currency, payment system, financial system
Categories: Payments & Commerce
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Countries: World
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