ECB unknowingly encouraging ppl to use Bitcoin by acknowledging it poses a big threat to Central Banks via @NewsVortex

Friday Humor: The ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows | ZeroHedge

zerohedge.com 02 Nov '12, 10pm

ECB unknowingly encouraging ppl to use Bitcoin by acknowledging it poses a big threat to Central Banks via @NewsVortex

In an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes). The substitution effect would also make it more difficult to measure monetary aggregates and, as a consequence, would affect the relationship between the mo...

Full article: http://www.zerohedge.com/news/2012-11-02/friday-humor-ecb...

Tweets

@Daccord_ » 04 Nov '12, 10pm
The ins and outs of a #ponzi [link] courtesy one European Central Bank... #ECB #Bitcoin
@tkinder » 03 Nov '12, 4pm
ECB Ponzi Bashes #Bitcoin. @myen [link] Via @zerohedge
@martinhume » 03 Nov '12, 1pm
RT @smvddl: ECB unknowingly encouraging ppl to use Bitcoin by acknowledging it poses a big threat to Central Banks via @NewsVortex [link]
@smvddl » 03 Nov '12, 10am
ECB unknowingly encouraging ppl to use Bitcoin by acknowledging it poses a big threat to Central Banks via @NewsVortex [link]
@niklaskluge » 03 Nov '12, 7am
Humor: The ECB explains what a Ponzi Scheme is; awkward silence follows | ZeroHedge [link] #ponzi #ECB #EUR #Bitcoin
@EESociety » 03 Nov '12, 12am
Friday Humor: The ECB Explains The threat of BitCoin and virtual currencies [link]
@electricwings » 03 Nov '12, 12am
zerohedge: ECB on the defence re Bitcoin [link]
@coming2getuBarb » 03 Nov '12, 12am
RT @JoeMulick: [link] Beware of that one Ponzi scheme....... you know.. BITCOIN
@BitCoinReporter » 02 Nov '12, 10pm
The ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows (First mention of Bitcoin by ZeroHedge?) [link] #bitcoin
@BeckonsTruth » 04 Nov '12, 8am
RT @smvddl: ECB unknowingly encouraging ppl to use Bitcoin by acknowledging it poses a big threat to Central Banks via @NewsVortex [link]
@thewriter_K » 03 Nov '12, 1pm
RT @smvddl: ECB unknowingly encouraging ppl to use Bitcoin by acknowledging it poses a big threat to Central Banks via @NewsVortex [link]
@bitrific » 03 Nov '12, 2am
Zerohedge...: Bitcoin is on ZeroHedge [link] [link]