A new report warns that central banks should think about potential risks before issuing their own cryptocurrencies.
A report from the Bank for International Settlements (BIS) found that virtual currencies issued by central banks could worsen bank runs by making it too easy to move money out of the commercial banking system online via a phone. The report doesn't entirely dismiss the idea, but it notes that virtual currencies could make trading securities and foreign currencies more efficient.
It's authors label Bitcoin as unsafe to rely on, pointing to its volatility. Any digitally based currency would have to comply with requirements aimed at stopping money laundering and financing of terrorism. The BIS is an international organization for central banks in Basel, Switzerland.
With files from Associated Press.