Representatives from the central banks of New Zealand and Australia have issued their own official warnings on bitcoin, terming the currency "interesting, but risky".
RBNZ Governor Graeme Wheeler cited price volatility as a cause for concern, but said “Conceptually, the idea is very interesting — that you can have a means of payment that basically is universally accepted and basically means that you get aside capital controls, you get aside exchange rate issues.”
“It might or might not hold its value depending on whether you keep the promise,” Stevens continued.
The comments are interesting, as Stevens seems to think bitcoin’s 21,000,000 unit limit is based on a ‘promise’ by some individual or organization (though he later acknowledged bitcoin was “based on some computer algorithm to limit supply”).
The AFR’s editor-in-chief, Michael Stutchbury, also refers to bitcoin and its contemporaries in the interview as “artificial currencies”.
He also cautioned against “speculative excesses” and said that, while it had not caused the economy “a material problem yet,” it could result in something like that favoured investment bubble trope, Tulip Mania.
However, Stutchbury did raise the interesting question of whether digital currency technology could “take us back to a world” of competing currencies.
Stevens responded that the current international economy already had competing currencies, saying there was no law against people making daily transactions in whichever national currency they chose.
He concluded with:
Few central bank officials have issued public opinion on bitcoin before October, but the currency's recent surge in value has raised the issue to prominence.
Attention and comments from governments of the world’s two largest economies, the US and China, may prompt those in other countries to speculate for themselves.
Australia currently ranks ninth in the world for peering nodes on the bitcoin network, according to Bitnodes.
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