Finance Head of Germany and France Calls For Crackdown of Bitcoin and Other Cryptocurrencies

The finance ministers and head bankers of Germany and France have called on the leaders of the G20 to intervene in the stormy world of cryptocurrencies that includes bitcoin, litecoin, and ethereum.

A letter to their fellow G20 finance ministers was signed by Peter Altmaier, the interim finance minister of Germany, Banque de France’s Francois Villeroy de Galhau, France’s Bruno Le Maire, and the Bundesbank’s Jens Wedimann. In the said letter, they said that digital “currencies” could potentially “pose substantial risks for investors.”

The letter argued that the increasingly popular cryptocurrencies required coordinated regulation and that a discussion on the said subject should be tackled on to the agenda for the G20 Summit in Argentina that will be held this year.

The said letter warned that cryptocurrencies are “largely mislabeled as ‘currencies’ in the media and on the internet,” after a similar statement that was released by the European Central Bank yesterday.

Andrew Bailey, the head of the Financial Conduct Authority of the United Kingdom, has also said that the cryptocurrencies do not resemble traditional currencies such as the dollar or the sterling in any way.

Finance heads fear that the huge amounts of money that are being ploughed into bitcoin and some its peers, and the lack of understanding of how the cryptocurrencies work, could pose a risk to financial stability.

Last year, the value of bitcoin surged. However, during the more recent weeks, the largest cryptocurrency in the world has taken a dramatic drop in its value.