Bitcoins alarms BSP

The Bangko Sentral ng Pilipinas (BSP) has issued warnings on bitcoins after it has come to their attention that virtual currencies are already being exchanged in the country.

BSP Deputy Governor Nestor A. Espenilla Jr. said BSP is raising an alarm these virtual currencies are still unregulated in the country and are not guaranteed by the central bank.

 “There are no existing regulations which would specifically protect consumers from financial losses if an organization that exchanges or holds virtual currencies fails or goes out of business,” said in an advisory posted in their website, recently.

Furthermore, this currency could be misused in money laundering.

“Basically, money laundering has been one of the concerns regarding bitcoins that’s why we’re studying what kind of regulation or arrangement should be put in place,” Espenilla said.

BSP has already started their move to regulate digital currency by meeting with owners of the bitcoin exchanges to look for leeway and possibilities for these trading platforms top submit reports to the Anti-Money Laundering Council.

Aside from money-laundering and other illegal activities, BSP recapitulate four reasons why the circulation of bitcoins is not going to help the economy:

First, one could lose his money through virtual currency exchange because it has no legal protection that covers for losses arising from any funds.

Second, virtual money could be easily stolen especially once one losses his password.

Third, payment thru bitcoins is immediate, direct and non-reversible; thus, one is not protected.

Fourth, its value fluctuates sharply and could permanently drop.

Bitcoins started circulating in the country last 2009 and is widely known for its instability.

After its launching, a Philippine company put up a trading website for the digital currency called mbtc.ph. (with news from PhilStar, Yahoo and  Newsbytes Philippines)IMT

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