Bitcoin is an asset, not a currency - Israel's central bank

 Israel’s central bank said on Monday it would not recognise virtual  currencies such as bitcoin as actual currency and that it was difficult  to devise regulations to monitor the risks of such activity to the  country’s banks and their clients.  

 “The Bank of Israel’s position is that they should be viewed as a  financial asset,” Baudot-Trajtenberg told a meeting of Israel’s  parliamentary finance committee, noting that there was no government  responsibility for investors in bitcoin 

 “There is a real difficulty in issuing sweeping guidelines to the  system regarding the proper way to estimate, manage, and monitor the  risks inherent in such activity,” she said. “Beyond the risks to the  customer there are also compliance risks to the bank.” 

The  value of a bitcoin, the biggest and best-known cryptocurrency, surged  in mid-December to nearly $20,000, then dropped to less than $12,000 at  the end of the month. It was trading on Monday around $15,370.  

Source: Reuters