Arab Today, arab today banking group sees limited future for bitcoin
Last Updated : GMT 08:53:10
Arab Today, arab today
Arab Today, arab today

Banking group sees limited future for Bitcoin

Arab Today, arab today

Arab Today, arab today Banking group sees limited future for Bitcoin

Washington - AFP

The online currency Bitcoin has shown unexpected success but its future as a broadly accepted exchange medium is limited, according to a report by a global banking group Thursday. The report by the International Institute of Finance, which represents more than 450 banks and financial institutions, said more regulation of Bitcoin exchanges and transactions could strengthen its legitimacy among consumers and ease regulators' doubts about it. But for the moment, the IIF report said, Bitcoin faces significant resistance in countries like China. And because most of the market is dominated by speculators rather than users, Bitcoin's value in other currencies is particularly volatile. In a market worth around $12 billion, the IIF said, "It is estimated that 50 to upwards of 90 percent of Bitcoin owners are speculators -- thereby contributing to the substantial price fluctuations seen recently." It pointed to the sharp fall of Bitcoin from a high of $1,240 to $576 in just three days in December after China banned its financial institutions from using the currency. Since then Bitcoin has rebounded, topping $1,000 earlier this week before falling to $915 on Thursday. "If it persists, this remarkably high volatility will compromise Bitcoin’s capacity to function as a medium of exchange, as it deters most large companies from accepting the digital currency as a form of payment," the IIF report said. Unlike other currencies, Bitcoin does not have the backing of a central bank or government. Instead, the units are generated by a complex computer algorithm designed by one or more anonymous people in 2009. Because of that, said the report, its functionality and ultimate success "is determined by programmers—and their goodwill is taken for granted." Thus the IIF characterized Bitcoin as effectively a "fiduciary currency" with no intrinsic value of its own and dependent on trust that it can be exchanged for a more common currency like the dollar. That makes it "inherently fragile," the IIF said. "Despite Bitcoin's 'ingenious features' it cannot provide a currency of stable value and its use as a broadly accepted medium of exchange appears limited," the report concluded.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today banking group sees limited future for bitcoin Arab Today, arab today banking group sees limited future for bitcoin

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today banking group sees limited future for bitcoin Arab Today, arab today banking group sees limited future for bitcoin

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday