VIRTUAL CURRENCY SCHEMES (OCTOBER 2012) – EUROPEAN CENTRAL BANK
This paper aims to provide some clarity on virtual currencies and tries to address the issue in a structured approach. This report is a first attempt to provide the basis for a discussion on virtual currency schemes. Although these schemes can have positive aspects in terms of financial innovation and the provision 7 ECB Virtual currency schemes October 2012 Executive summary of additional payment alternatives to consumers, it is clear that they also entail risks. Owing to the small size of virtual currency schemes, these risks do not affect anyone other than users of the schemes. This assessment could change if usage increases significantly, for example if it were boosted by innovations which are currently being developed or offered. As a consequence, it is recommended that developments are regularly examined in order to reassess the risks.
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