German Central Bank: Bitcoin poses a high risk of speculation

Following the central banks of China, India, France and other countries, the German central bank (Bundesbank) also warned of the speculative risks of Bitcoin. In the past two months, with the explosive popularity of Bitcoin, regulators from various countries have expressed their intention to strictly regulate Bitcoin and warned of the money laundering risks of Bitcoin.

At present, central banks around the world have basically formed a trend of banning Bitcoin, warning that it has various risks such as money laundering and speculation, and advocating strict supervision. Among the major central banks, only the Federal Reserve (Fed) has a tolerant attitude towards Bitcoin. The outgoing Federal Reserve Chairman Ben Bernanke also sent a "cautious blessing" to Bitcoin, believing that Bitcoin may have a long-term future.

A member of the Bundesbank's board said that Bitcoin is "highly speculative" due to its high volatility and unique structure. Since there is no government guarantee, Bitcoin investors could lose all their money. The Bundesbank warned of these risks.

Another Bundesbank official said that central bank members and European regulators are beginning to discuss the Bitcoin phenomenon more and more, and they also support the European Central Bank's (ECB) previous warning about the risks of Bitcoin.

The statement by the central bank officials may mean that Germany's attitude towards Bitcoin is changing. Previously, Germany has been one of the few countries that recognize the legal status of Bitcoin. In August 2013, Bitcoin was recognized as a "unit of account" by the German Finance Ministry, which means that it is considered a legal currency in Germany.