The Czech National Bank has published a statement addressing bitcoin and cryptocurrency on its website. The document addresses the popularity of bitcoin in Prague and the Czech Republic, discusses whether cryptocurrency poses a threat to the traditional banking system, and argues that fiat currencies comprise better currencies than bitcoin due to price stability.
The Czech National Bank States That There “Is No Reason for Banks to Fear” BitcoinThe Czech National Bank’s statement regarding cryptocurrency is titled “Don’t be afraid of bitcoin”, and seeks to address popular assertions regarding the potential threats that bitcoin and cryptocurrency may pose to existing monetary systems.
The document starts by stating that “Prague is home to a strong community of cryptocurrency supporters and users.” The statement then immediately turns to “questions regarding whether institutions such as the Czech National Bank should be afraid of bitcoin…. And of their power to marginalise traditional money.”
The Czech National Bank states that there “is no reason for banks to fear” bitcoin and cryptocurrency. Virtual currency adoption is described as “negligible in its size and scope”, arguing that “electronic transactions using bitcoin worldwide amount to only 16% of the electronic transactions conducted in the Czech koruna, a currency used by just 10.5m people.
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