European Bank Warns Against Betting the Farm or Pension on Bitcoin

By Gary Cutlack on at

The European Banking Authority has advised cautious investors to avoid the new wave of virtual currencies, with the key issue being the lack of regulatory backup should the likes of Bitcoin and those who run it just.... decide to stop bothering.

The EU Bank warns that: "Currently, no specific regulatory protections exist in the EU that would protect consumers from financial losses if a platform that exchanges or holds virtual currencies fails or goes out of business," meaning you have no protection like the £85k deposit guarantee enjoyed by savers in regulated UK accounts. Plus, of course, you waive your right to refund or legal recourse when shovelling money about in complete anonymity.

The plus side being you might be able to five-bag your savings in a couple of days if you time a Bitcoin gamble right. That one is just us dreaming, not official EBA investment advice. [The Register]