The Bank of Latvia Warns Users against Bitcoin

By July 25, 2014Bitcoin Business
Click here to view original web page at

The Bank of Latvia Warns Users against Bitcoin

The Bank of Latvia Warns Users against Bitcoin
The Bank of Latvia Warns Users against Bitcoin

In a widely circulated message, Deniss Filipovs, Financial Analyst of the Bank of Latvia, has warned the users against the digital currency. From his message wherein he said that Bitcoin is not issued by a central bank as legal tender with a guaranteed nominal value of currency, it seems he merely repeated what several other central banks of the other countries have said.

Deniss Filipovs said that Bitcoin is not pegged to any country’s currency; therefore it carries various risks, such as losing money during the exchange process. Also, according to him as consumers of Bitcoin are not protected by the EU regulation, in situations these are stolen it won’t be addressed as these cannot be retrieved.

The warning message from the top official from the Bank of Latvia also says that Bitcoin which is considered to be virtual currency does not have an official legal status. He said that Bitcoin can merely be seen as a product or a means of trade if parties involved agree so. He appealed to the residents not to use Bitcoin, as its buying and exchanging carries risks.

The warning against the digital currency has come when several Latvian businesses are planning to adopt Bitcoin payments anytime soon. Several organizations were rumored to be preparing to accept the digital currency e.g. Maxima, mobile carrier LMT and social network However, the latest status update says that these companies have dismissed any such plan.

Related Articles

AirBaltic, Latvia’s National Airline Decided to Accept Bitcoin 

Though Bitcoin has been receiving a lot of attention from the fellow users, the silence from the Latvian central bank was being taken as warning. However, now that the central bank of the country has finally broke its silence and warned against the use of Bitcoin to the countrymen, it has to be seen how many of the businesses will try their hand in the digital currency business.

Currently, according to there are no Bitcoin ATMs and it only has 108 Bitcoin nodes that rank it 53rd among all countries. However, the decision by Latvia’s national airline AirBaltic, which aims to take a new innovative approach to its clients, accepting Bitcoin was the biggest news so far the digital currency in the country.

Deciding to accept Bitcoin, the airline joined WordPress, Overstock, Expedia and Dell to become one of the few major companies that accepted the digital currency. However, the decision was made before the warning was issued by the national bank of Latvia and it has yet to be seen what the next plan would be from the airline.

To contact the reporter of this story: Deepak Tiwari at

Click here to view full article

Leave a Reply

All Today's Crypto News In One Place