Cryptocurrency Investments Are Risky: Romania’s National Bank
Romania’s National Bank considers cryptocurrencies like Bitcoin as very risky and volatile assets, and points that any involvement with them is discouraging, which includes the idea of providing services, which offer transaction deals for these currencies.
Currently, the National Bank of Romania strengthens his position from March 2015, when it had warned about the high risk of investing in such assets. BNR mentions that there is a rising interest in digital currencies, especially in Bitcoin, both for transactions and purchases. The financial and reputational risks have been amplified for owners, in the context of a lack of regulation and oversight of digital currency schemes at a global level.
BNR, in order to avoid a manifestation of the reputational risk at the level of credit institutions, in its position discourages any kind of involvement with virtual currencies. It will go on with monitoring the evolution of virtual currency schemes from the perspective of potential risks being manifest in the financial area. However, due to very low volumes, these schemes can’t affect Romania’s financial stability.