VIRTUAL CURRENCY SCHEMES: A FURTHER ANALYSIS (FEBRUARY 2015) – EUROPEAN CENTRAL BANK
VCS present several drawbacks and disadvantages for users, i.e. lack of transparency, clarity and continuity; high dependency on IT and on networks; anonymity of the actors involved; and high volatility. In addition, users face payment system-like risks owing to their direct participation in the VCS, as well as risks associated with certain intrinsic characteristics of VCS, i.e. the counterparty risk associated with the anonymity of the payee, the exchange rate risk associated with high volatility and the risk of investment fraud associated, inter alia, with the lack of transparency.
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Link for ebook: VIRTUAL CURRENCY SCHEMES: A FURTHER ANALYSIS (FEBRUARY 2015) – EUROPEAN CENTRAL BANK
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