Kyrgyz Republic’s national bank says that there are some fundamental problems with Bitcoin

Kyrgyz Republic’s national bank says that there are some fundamental problems with Bitcoin

4 August 2014, 18:01
Rachael Taylor
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In a warning issued by the National Bank of the Kyrgyz Republic the users in the country have been warned against Bitcoin and other similar virtual currencies. According to government bank recently the world has seen the emergence and spread of such new phenomenon of virtual currencies like Bitcoin; however, there are some inherent risks associated with them.

The government agency is of opinion that in Kyrgyzstan as well there are some organizations that are trying to promote the digital currencies. However, under the legislation of the Kyrgyz Republic the sole legal tender on the territory of the country is the national currency of Kyrgyzstan “som.”

Thus, according to it the use of “virtual currency” Bitcoins, in particular, as a means of payment in the Kyrgyz Republic will be a violation of the law of our state. The decision is in consonance with various governments like the ones from China, India and others that have issues similar warnings for Bitcoin users.

The government bank says that as opposed to the traditional paper-based or non-cash money held in banks, the digital currencies do not have a tangible material expression and operates on the basis of distributed electronic networks. Also, their circulation limited as it is carried out only within that network.

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