Italian Economy Minister The Pier Carlo Padoan said on Wednesday that some central banks have considered issue of cryptocurrencies. The aim is to prevent bubbles evolving in the market.
Padoan said at Enel Milan:
“Some central banks are looking into, and have even considered issuing, cryptocurrencies, to avoid bubbles that explode and do damage sooner or later.”
Although Bitcoin and cryptocurrencies exploded in 2017, they brought new challenges in regulation arenas. Some central banks said they have been studying cryptocurrencies while many were cautious about it. This is due to challenges such as volatility. Another challenge has been the use of Bitcoin for illegal activity.
Bitcoin traded for as high as $20,000 last year and ICOs raised over $3 billion to establish new cryptocurrencies. It is possible that the legal challenges for Bitcoin will continue. A few experts warned that digital currencies are unsustainable bubbles. However, more of them support cryptocurrencies.
At the press time, bitcoin was trading at $10,324.0. It dropped after Facebook banned cryptocurrency advertisements on January 30. UK’s finance watchdog has also warned of digital currency scams online.
Moreover, this week, South Korea have put up new cryptocurrency trading rules in order to crack down on fraud. The market realignments are said to be causing problems in South Korea.