Spaniards spooked by Cypriot savings grab turn to virtual currency to hide money from THEIR cash-strapped government


Spaniards spooked by Cypriot savings grab turn to virtual currency to hide money from cash-strapped governmentTrio of Bitcoin apps soar up Spanish download chartsBitcoin is a decentralised peer-to-peer currency that cuts out banksValue soars from 32 to 48 per Bitcoin in just a week

10en.pdf” rel=”nofollow” target=”_blank”>European Central Bank report published last year warned that increased demand for Bitcoin 'could have have a negative impact on the reputation of central banks'.

'The public may perceive the incident as being caused, in part, by a central bank not doing its job properly,' the report added presciently.

However, while Bitcoin might be considered a possible bolt-hole for small savers scared that their nest eggs could be seized by cash strapped governments, the Russian billionaires also burned by the Cypriot tax levy will not to look for another safe haven.

'Bitcoin is good if you want to make a deposit of between $1,000 and $10,000,' Mr Colas said. 'But the liquidity is just not there in the system for multimillion dollar transactions.'