Bundesbank Board Member Still Warns about Bitcoin’s Volatility

Bundesbank Board Member Still Warns about Bitcoin’s Volatility

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Japan legalized Bitcoin and the price has begun to skyrocket, but some German bankers are still warning people about using the new currency. In a May 5 news article, a board member of Bundesbank decried the use of bitcoin as risky and ill-advised. 

Also read: Coincheck Launches Interest-Paying Bitcoin Accounts Pending Regulatory Approval

The board member said, “From our point of view, bitcoin is not aGerman Bankers Chastise People for Using Bitcoin suitable medium for storing values. This shows a simple view of the very fluctuating course development.”

This comment is not surprising coming from the German banking gentry, as most Germans prefer cash over debit cards. A news article by Handelsblatt Global cited a recent survey,

“In fact, Germans – and their German-speaking Austrian neighbors – are more likely to carry cash around than any other European country. They’re also less willing to imagine a day when they can get along without it, a new survey released Wednesday has found.”

Question of Bitcoin’s ‘Fluctuating Course’

The Bundesbank board member was specifically concerned about the “volatile” nature of bitcoin, but his comment resonates with fear, uncertainty, and doubt. In reality, the volatility level of bitcoin has declined over the years.

Justin Connell, writing for Bitcoin.com, stated in an article that bitcoin volatility has fallen since 2011. According to the charts, bitcoin has seen an ebb in volatility when compared to other currencies such as the Euro, Bristish Pound, and Japanese Yen. Connell said,

Bitcoin’s volatility has fallen, now sitting at approximately 5%. For comparison, gold volatility averages approximately 1.2% and major fiat currencies between 0.5% and 1.0%.

Connell finished the article by saying bitcoin transactions have significantly increased throughout the currency’s lifespan, along with the price, yet volatility has not drastically surged.

No Prohibition of Bitcoin in Germany…Yet

Even though German bankers erroneously take issue with bitcoin volatility, they are still not hurrying to ban it. They see it as a useful means to transfer money so long as people do not violate money laundering regulations.

Currently, the banking board German Bankers Chastise People for Using Bitcoinmember views bitcoin as a niche product that does not threaten the global monetary system or German banking schemes. In other words, bankers give people permission to use bitcoin so long as laws are being followed and the digital currency does not threaten the status quo. 

The news article said, “Users should not violate the rules on money laundering. Bitcoin also does not pose a threat to the financial system, at least as long as it remains a marginal phenomenon.”

Do you think German bankers will ever have a change of heart? Let us know in the comments section below.


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  • You can count on the Germans to be the last in. I really wonder why they are proponents of the Eurozone if they feel so opposed to “fluctuations”. The Germans will be the first with an, “I told you, so” in either win or lose for Bitcoin. Disdain for a non-german idea or fad is what is going on. If they were the creators we would hear nothing but praise whether the outcome was good or ugly and they would not quit at trying to to be the best at it. Take for instance, the boring German beer law, a thing of national pride and produces more than not a “skunky” beer. I do like German beer and Octoberfest, but Stone Brewery is in my fridge right now. Just look around, Germany! Bitcoin is surrounding you, just like all the choices of better beer.

  • Zyo

    German can ban Bitcoin if they want but the reality will be different. Bitcoin can’t be controlled. Every times they warn user about Bitcoin, they also, unintentionally, inform users about the existence of Bitcoin, for many, the first time.

  • Mahesa Suprobo

    Honestly, I’m beginning to trust bitcoin more than USD. After watching Bitcoin since 2011, I’ve seen the highs and lows. With the recent rejection of the SEC, I feel like the resiliency of Bitcoin is unparalleled.

  • Ricky Bickerton

    Cash is always easier and more secure after you have had a few beers.