How will the virtual currency change the economic and financial system
In this paper, we will review the characteristics of the virtual currency, background of development, issues and policy responses, and discuss how the virtual currency affects existing economic and financial systems.
Virtual currencies: Media of exchange or speculative assets?
This paper uses a theoretical model to analyse the dynamic relationship of virtual currency with fiat currency. The model demonstrates that the price impact of potential users and speculators in virtual currencies adversely affects their property as a medium of exchange and renders a crowding out of existing fiat currencies such as the US dollar unlikely
Regulation of Virtual Currencies: Mitigating the Risks and Challenges Involved
This article makes an attempt to create awareness on what virtual currency is, in highlighting the differences between virtual currency and the national currency in circulation. This would include discussion on the interaction of virtual currency with the real economy and its risk to the real economy. Further, the article draws attention to consumer protection issues and the significant consumer risks associated with the use and ownership of virtual currency. An Islamic finance perspective on virtual currency is included, given Malaysiaâs dual financial system which support both conventional and Islamic finance. Finally, this article also draws attention to some of the possible regulatory challenges that virtual currency may create.
Banking Bitcoin-Related Businesses: A Primer for Managing BSA/AML Risks
This paper examines the current regulatory environment for Bitcoin-related businesses as well as measures these businesses can adopt to mitigate the BSA/AML risks inherent in the Bitcoin protocol. It also presents a framework for financial institutions (FIs) to consider for managing the risks associated with banking these companies. This paper is not a replacement, update, or supplement to BSA/AML guidance requirements provided in November 2014 by the Federal Financial Institutions Examination Council (FFIEC). By making a commitment to BSA/AML compliance, Bitcoin-related businesses can both better position Bitcoin as a mainstream payment system and enhance the ability of FIs to successfully bank them.
National Security Implications of Virtual Currency: Examining the Potential for Non-state Actor Deployment
This report examines the feasibility for non-state actors, including terrorist and insurgent groups, to increase their political and/or economic power by deploying a virtual currency (VC) for use in regular economic transactions.
Virtual Currencies are not Threat to the Euro Area,says ECB President
Letter from the ECB President to Ms Eva Kaili, MEP, on virtual currency schemes and alternative forms of payment.
Opinion Of Advocate General Kokott: Tax legislation – Value-added tax – Exchange of the virtual currency – bitcoin – for a conventional currency
In these proceedings the Court of Justice will for the first time address the question of the treatment for VAT purposes of the exchange of the virtual currency âbitcoinâ for conventional currencies. To this end, further clarification is required of the scope of the exemptions for financial transactions in particular.
Call for evidence: Investment using virtual currency or distributed ledger technology
ESMA has been monitoring and analysing virtual currency investment over the last 6 months, to understand developments in the market, potential benefits or risks for investors, market integrity or financial stability, and to support the functioning of the EU single market
Virtual currency schemes â a further analysis
This report adds perspective and detail, while reiterating and confirming the general consideration of the ECBâs report on virtual currency schemes (2012) that, although VCS can have positive aspects in terms of financial innovation and the provision of additional payment alternatives for consumers, it is clear that they also entail risks.
The Digital Bitcoin And The Coming Revolution In Financial Transactions
Bitcoin transactions require no banks and no clearing houseâplus they execute in real time. What does this mean for the banking industry? Ignore this virtual currency system, and others like it, at your own peril.
Bitcoin – a virtual currency
The Federal Financial Supervisory Authority (BaFin) assigns BTC legally binding as financial instruments in the form of the unit of account (section 1 (11) sentence 1 of the German Banking Act).
Virtual Currency Schemes October 2012
This paper aims to provide some clarity on virtual currencies and tries to address the issue in a structured approach.
