BRUSSELS, Belgium—The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has released a 30-page report on cryptocurrency titled “Virtual Currencies and Central Banks’ Monetary Policy: Challenges Ahead.”
It concludes that cryptocurrency is unlikely to take the place of fiat currency, even in the long term, Finance Magnates reported.
The report was written by Marek Dabrowski and Lukasz Janikowski of the Center for Social and Economic Research, which is a non-profit research institution in Warsaw.
The paper begins by stating that contrary to the expectations of many, the Bitcoin “experiment” has not only survived but expanded beyond niche status. It identifies the 2017 bubble as being responsible for attracting so much interest.
After examining the technology behind the three top cryptocurrencies – Bitcoin Ethereum and Ripple – the authors conclude that virtual currencies have no intrinsic value “in the sense that they are not linked to any underlying commodity or sovereign currency,” but it also recognizes that fiat currencies share this characteristic, Finance Magnates said.