EBA: Financial Institutions Should Avoid Bitcoin, Await Regulation
The European Banking Authority has warned that financial institutions should not buy, hold or sell digital currencies – yet.
The three European Supervisory Authorities have released a warning on the risks involved with investing in cryptocurrencies.
Bitcoin’s biggest problem is still the threat of a 51% attack, according to Dr Dirk Haubrich of the European Banking Authority (EBA).
The bank wants to use ethereum as a notary, but regulators discourage holding even the tiny bit of ether needed to put data on the public blockchain.
Banks need to understand blockchain technology, according to the chairman of the European Banking Association working group.
The Euro Banking Association (EBA) has explored the short-term implications of blockchain technology in its most recent report.