Governor of Portugal’s Central Bank Hélder Rosalino says cryptocurrency isn’t a currency per se, but recognizes that it has incredible disruptive potential, Cryptocoins News reported.
“A currency, to be classified as such, needs to have two fundamental characteristics: The first is to associate itself with the idea of store of value, then, on that currency there must be a right to credit,” he said in an interview with Portuguese publication ECO.
The Central Bank Chairman said they look at cryptocurrencies with concern and caution because, he said, “recognizing the disruptive innovation associated with them, there are several risks.”
Speaking about the risks associated with cryptocurrencies, Hélder Rosalino pointed to its “speculative dimension.”
According to him, “as cryptocurrencies like Bitcoin (Bitcoin) are generated through mining, and as its amount is limited, demand surges and speculation ensues. “We consider that the rise in demand leads to a second problem, volatility, and it’s the central bank’s duty to train and protect consumers,” he said.
Plus, Rosalino cited legal concerns as he warned it “may not be possible to exchange a virtual currency for a currency accepted by regulators and central banks.”
To the central bank’s governor, Fintech’s advantages are merely technological, as he sees great potential in blockchain technology, and not in cryptocurrencies.