Central banks’ responses to virtual currencies: an overview

This article is focused on central banks' responses to virtual currencies. The view about virtual currencies is different in separate regions. Even in the same country we can see not similar opinions about cryptocurrencies among different authorities. The empirical research on virtual currencies disclosed that we do not have strict rules in central banking and that this aspect creates more risks in financial system. There are central banks which prohibit financial market participants to participate in activities associated with virtual currencies while others are considering their own virtual currency or thinking about virtual currencies in foreign reserves portfolio. The bank of Lithuania plans this year to issue a digital collector coin using blockchain or other equivalent technologies. So we can see very different central banks positions all over the world. After analyzing central banks positions in various regions the conclusion can be made that in some cases national banks can face even political pressure because of financial innovations