The European Central Bank (ECB) has urged its members to impose tighter controls on the activities of companies that exchange virtual currencies or custody them for their clients.
The ECB states:
The opinion paper isn't the first instance in which the ECB has sought to question the impact of digital currencies. Last year, the central bank described them as "inherently unstable", while at the same time making the argument that the technology could have an impact on future monetary policymaking.
"Although [virtual currency system] units are not denominated in euro, they do have the potential to have an impact on monetary policy and price stability, financial stability and the smooth operation of payment systems in the euro area," the ECB said at the time.
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