Taiwan’s Central Bank governor slams cryptocurrencies

The new currencies lack the basic element of trust: Yang

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Taiwan's Central Bank governor slams cryptocurrencies.

Taiwan's Central Bank governor slams cryptocurrencies. (By Associated Press)

TAIPEI (Taiwan News) - Cryptocurrencies do not form part of the trust system which allows common currencies to flourish, Central Bank Governor Yang Chin-long (楊金龍) said Tuesday.

Speaking at a forum about the bank’s role in a digital economy, Taiwan’s central banker emphasized that the use of a currency as a method of payment relied on a long history of trust. Once that trust disappeared, the currency’s value could collapse to zero, Yang said, according to a Liberty Times report.

Cryptocurrencies still encountered numerous problems, from sharp ups and downs in their value and supply issues to a lack of efficiency, Yang said. As there was no way of asking for compensation or redress, the new currencies could often be used by unscrupulous characters, he added.

Because of this range of problems, the Central Bank decided in 2013 to list cryptocurrencies not as true currencies, but as virtual merchandise, the Liberty Times reported.