Australia's Central Bank Chief says Bitcoin is associated to a "Speculative Mania"
The fast growth of the bitcoin has drawn a lot of interest from investors, but also some criticism from several central banks in different countries. One of the latest such institutions to talk about bitcoin was the Central Bank of Australia.
The Central Bank's governor, Philip Lowe, stated at the Australian Payment Summit that bitcoin "feels like a speculative mania." Lowe also raised some concerns on the volatility of the bitcoin, which has actually reached a new high this week, being valued at no less than $17,500. The increase was due to the launch of bitcoin futures trading on the CBOE.
Lowe: Cryptocurrencies will not become common payment means
So, while talking about cryptocurrencies, Lowe said that they will most likely not serve as forms of payments for everyday goods:
“In reality, these currencies are not being commonly used for everyday payments and, as things currently stand, it is hard to see that changing.”
Lowe claimed that the volatility when it comes to bitcoin's value, but also the costs associated to cryptocurrency transactions are things worth to be kept under consideration. Furthermore, he raised concerns on the increased electricity costs associated to bitcoin mining. Because of all these factors, Lowe said that the bitcoin and cryptocurrencies in general will most likely not become widely used as payments.
“So the current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment.”
Australia has no intentions for the moment to release a national cryptocurrency
Although some countries have shown interest on the subject, Australia is not interested in issuing its own digital currency. Lowe explained that there is no case for doing so in Australia for the moment, although technology is considered to lead to more efficiency and lower costs.
