Bitcoin does not threaten US financial stability-regulator :

 

WASHINGTON / LONDON, Dec. 20 (Reuters) - Bitcoin is not a threat to financial stability, UK and US monetary and financial officials said on Wednesday.

Cryptocurrency had previously dropped by more than 10% in Asian trade to fall to a week-low at $ 15,800 (14,150 euros) on the Bitstam trading platform, having lost nearly a fifth of its value compared to its peak reached three days ago. Around 17:55 GMT, it yields 4.72% to 16,873 dollars.

"Currently, we do not see it as a problem for financial stability," said the Governor of the Bank of England during a speech in the House of Commons.

Mark Carney recalled on this occasion that the combined value of all the circulating currencies represented only half of the market capitalization of Apple.

"So this is significant (..) but represents more a risk comparable to that of an action that extends quite widely on a global scale."

Mark Carney added that he did not expect that the regulation of the bicoin comes under the jurisdiction of the Bank of England.

In the United States, the new Comptroller of the Money has for its part felt that bitcoin does not pose a threat to the stability of the US banking system because the banks have largely refrained from taking positions on cryptocurrency.

"There may be some traces in some investments, but banks have largely stayed away from the (crypto) currency ... .. It does not seem to be present in the banking system," said Joseph Otting, on the occasion of his first official press conference since taking office as director of the Office of the Controller of the Currency. (Andy Bruce, David Milliken in London and Michelle Price in Washington, Marc Joanny for French service, edited by Juliette Rouillon).
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