National Bank of Romania warns against any involvement with digital currencies

Anca Alexe 07/02/2018 | 10:10

The National Bank of Romania (BNR) classifies digital currencies like Bitcoin as speculative assets which are extremely volatile and risky, mentioning that it discourages any kind of involvement with them, including the idea of providing services for entities which offer investment or transaction services for these currencies.

“In the context of the evolving virtual currency schemes, including the risks associated with them, the National Bank of Romania strengthens the position it expressed in March 2015, when it had warned about the high risk of losing the investments made in such currencies. BNR signals an increase in the population’s interest regarding digital coins, especially Bitcoin, both for owning and transacting them and as a business. In the context of a lack of regulation and oversight of digital currency schemes at a global level, as well as a diversification of these schemes, the financial and reputational risks have been amplified for owners,” argues BNR in a statement.

“In order to avoid a manifestation of the reputational risk at the level of credit institutions, BNR, in its position of an oversight authority for these institutions, discourages any kind of involvement with virtual currencies. BNR will continue to monitor the evolution of virtual currency schemes from the perspective of potential risks being manifest in the financial system, however due to very low volumes, these schemes are not a threat to Romania’s financial stability”.

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