Nine years since the birth of Bitcoin central banks around the world are increasingly recognising the potential upsides — and downsides — of digital currencies . ECB President Mario Draghi said in November that the impact of digital currencies on the euro-area economy was limited.China has made it clear: the central bank has full control over cryptocurrencies. Nevertheless, the Reserve Bank of India has a group studying whether digital currencies backed by global central banks can be used as legal tender. But they do pose new risks to central banks, including to their control of money supply and price stability, and the transmission of monetary policy, Cetinkaya said. One option is a currency available to the public, with only the central bank able to issue units that would be directly convertible to cash and reserves.

Source: Economic Times January 30, 2018 18:22 UTC