Investing.com - A new European Union report says cryptocurrencies will neither challenge nor replace traditional ones issued by central banks, but still serve a useful purpose. The report, which was prepared for the European Parliament's economic and monetary affairs committee, says cryptos will not achieve official status because of their high risk of fraud, price speculation and lack of stability.
The report compares digital currencies to private ones of the 18th and 19th centuries, which had no intrinsic value, and thus never caught on. Despite those shortcomings, cryptocurrencies have value because they offer relatively fast and secure cross-border transactions, with low fees and near anonymity, according to the report. For those reasons, the report says digital currencies should not be banned. Instead, it recommends that they be subject to clear, cohesive regulations that treat them as a taxable asset.