European Central Bank Demands Transparency, Taxes, and Regulation on Bitcoin

European Central Bank governing council member Ewald Nowotny called for the imposition of value-added tax on today’s biggest cryptocurrency – Bitcoin.

In an interview with the German news outlet Sueddeutsche Zeitung, Nowotny also mentioned the need to have transparency on as to who takes part in any Bitcoin-focused financial transactions.

“One ought to apply what the basic rule is in any other financial transaction: everyone involved should reveal their identity.”

According to reports, Nowotny also pointed out the possibility of using Bitcoin as a tool for money laundering.

In the interview, he states:

“It can’t be allowed that we’ve just decided to stop printing 500-euro notes to fight money laundering, that we’ve slapped strict rules on every tiny savings club, and then have to watch people blithely laundering money around the globe with Bitcoin.”

The European Central Bank is not the first one to issue warnings against Bitcoin. Both China and India also issued strong warnings against the use of cryptocurrencies.

Likewise, the head of Danish central bank, Lars Rohde, also urged its citizen to “stay away from Bitcoin as it is deadly”.

Despite the skyrocketing price of Bitcoin, many are still convinced that this is a bubble and not as viable currency. Other ECB officials also believe that the digital currency cannot be considered as a competitor to Euro, the single currency utilized by 19 members of the European Union.

Although Nowotny has been vocal about being against Bitcoin, he also admitted that the issue has now reached the heart of the society.