BNR warns banks to stay away from virtual coins

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National Bank of Romania (BNR) discourages any involvement of credit institutions about virtual currencies in order to “avoid a reputational risk event”, according to a press release.

In the context of the evolution of virtual currency schemes, including the risks associated with them, the central bank strengthens its position expressed in March 2015, when drawing attention to the high risk of losing the amounts invested in such coins.

”Given the exponential growth in the last period of the price of most virtual currencies and the very high fluctuations they have recorded for very short periods, BNR classifies the virtual coins, such as Bitcon, as speculative assets, highly volatile and risky,” the release reads.

Central bank officials point out that the financial institution will continue to monitor the evolution of virtual currency schemes in terms of potential risks to the financial system, noting that “at present, due to very small volumes, these schemes are not a threat to Romania’s financial stability”.

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