Virtual currencies do not pose a threat to the world’s financial stability, according to the German federal government. Authorities added that the volume of cryptocurrency transactions is too low in comparison to the traditional financial system.
However, German Officials believe there is no reason to ignore the developing industry, since it presents the world with some problems that need to be addressed internationally. And a similar message came the head of the German financial watchdog BaFin, Felix Hufeld. He went on record saying that the blockchain technology is highly disruptive and that cryptocurrencies potentially pose a threat since in the “worst case”they can be used for illegal purposes such as terrorism and laundering.
Earlier in March, Mark Carney a Chairman of the Financial Stability Board (FSB), which coordinates the financial regulation for the Group of 20 Economies, said in a letter to central banks and finance ministers of the G20 that the organization doesn't see Bitcoin and other cryptocurrencies as a threat to the global economy.
Recently prosecutors in the German state of Bavaria have undertaken a sale of confiscated cryptocurrencies worth around $13.9 million. The currencies were seized from “Lesen und Lauschen”, an online platform which allegedly offered audiobooks and e-books illegally for unusually low prices. The sell-off involved 1312 Bitcoins (Bitcoin), 1399 Bitcoin Cash (Bitcoin.Cash), 1312 Bitcoin Gold, and 220 Ethereum (ETH/USD), and was the highest of its kind in Germany’s legal history.
By Nadya Astam