ALB
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“They are unregulated investment alternatives where nothing is guaranteed. The use of this money requires maximum caution by all economic agents”, he said about the role and implications of the expansion of crypto currency. This way, he has reiterated the official stance taken by the Bank of Albania a few months ago, according to which, the law in power does not make provisions for such activity in our country. “The Bank of Albania has not licensed any financial subjects the activity of which includes the use of virtual currency. As a result, each company which is involved in this activity in the Republic of Albania is not licensed, therefore, its activity cannot be subject to the regulatory and supervisory activity of the Bank of Albania”, was the official stance of the central bank regarding this financial activity, which, although it is informal, it is now exerted by a number of people in our country. But, it looks like the fact that the Financial Supervisory Authority does not recognize this activity, has not prevented it from becoming a new reality in the Albanian financial world.
According to the Bank of Albania, the threats associated with this activity have to do with the fact that the value of virtual currency which is invested can be manipulated, facing the investor with significant losses. Another threat also relates to the fact that agents who deal with the exchange of virtual money are unknown companies, unregulated and unregistered in a particular jurisdiction. Let us not forget the threat coming from cyber-attacks, given that it is only operated through computers.
Bitcoin, authorities admit the informal use of the currency in Albania
Authorities in the country have admitted the fact that Albanians have now started to know and even use Bictoin. But, they continue to reiterate the fact that this remains an informal activity which could even turn out to be a dangerous one. But how does Bitcoin function? Everything starts with someone interested in investing a particular amount of cash, turning them into virtual money in exchange of a particular interest rate. This operation is enabled by the management of several computer equipment by a particular group of people. You offer them your money, while they invest them in Bitcoin based on the current exchange rate. Meanwhile, given that such financial activity is not yet licensed in Albania, Bitcoin doesn’t yet have a seat or a cash machine, where amounts of money can be withdrawn. Therefore, people who use this coin, which may have its seat in other European countries, where it has been legalized, can use cash machines in the nearest countries, such as in Kosovo, for instance. Thus, although Bitcoin has not yet become legal in Albania, it doesn’t seem that difficult for it to be present here. This is the reason why the Bank of Albania has admitted this and are frequently addressing to the public to show caution with this currency.
Bicoin value changes in an unpredictable way
Sudden changes of its value. Unpredictable ups and downs which could bring many profits for investors, but at the same time, they could also ruin them. This is the main feature of the virtual money in international markets, turning it into an investment both attractive, in the sense of making money within a short period of time, while on the other, a possible danger to lose all your money. Let us recall that at the end of last year, Bitcoin depreciated by 30% within a few hours, from to 20 thousand USD to14 thousand USD. In spite of the risks, Bictoin is attracting many people to invest large amounts of money in it. Experts of the field explain this with a number of factors, one of them being that Bitcoin users are not affected by inflation. In other words, in contrast to the money which is emitted by banks on a continuous bases, there’s a limit on Bitcoins, which means that only 21 million of them can be emitted. On the other hand, the fact that Bitcoin is not regulated by any government, makes it a global virtual currency. Another advantage of the virtual currency is that it can be transported very easily.
