Virtual currencies and central banks monetary policy: challenges ahead

Virtual currencies were a contemporary form of private money. Thanks to their technological properties, their global transaction networks were relatively safe, transparent, and fast. This gave them good prospects for further development. However, they remained unlikely to challenge the dominant position of sovereign currencies and central banks, especially those in major currency areas.

As with other innovations, virtual currencies posed a challenge to financial regulators, in particular because of their anonymity and trans-border character.

This document was provided by Policy Department A of DG Internal Policies of the European Parliament at the request of the EP Economic and Monetary Affairs Committee.

European Parliament: European Parliamentary Research Service: In-Depth Analysis, June 2018: http://www.europarl.europa.eu/RegData/etudes/IDAN/2018/619009/IPOL_IDA(2018)619009_EN.pdf

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