Bitcoin Schemes- inovation or a threat to Financial Stability?

  • Violeta Madzova


A virtual currency can be defined as a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community. The recent developments in widely spread internet and data mining activities, highlighted the issue of accepting and using virtual currencies for different purposes, including, buying commodities or services, saving, as well as converting into real currencies, such as US dollars, euro or other currencies.

One of the most controversial and the most advanced virtual currency scheme to date is the one so-called Bitcoin, designed and implemented by the Japanese programmer Satoshi Nakamoto in 2009. Although  the use of Bitcoin  might have positive impact on  financial innovation and the provision of additional payment alternatives to consumers, it also might increase the risks in financial payments, exchange rates of  real currencies, as well as increase the possibility of money laundering, using them for illegal deeds.

Therefore , the purpose of this paper to clarify the main characteristic of Bitcoin, and analyze its positive aspects as well as the threats that may occur to the modern world economy , in case the usage of this money , significantly increases .


BALL, James , “Bitcoins: What are they, and how do they work?”, The Guardian, 22 June ,2011.

European Central Bank, “Virtual currency schemes “October 2012,

Benjamin Wallace, “The rise and fall of a BITCOIN”; November 23, 2011, .

BBC (2009), “Sales of virtual goods boom in US”, -, BBC News, October 2009.

BELLER, Matthew (2007), “The Coming Second Life Business Cycle”, Ludwig von Mises Institute,2 August.

BIS, “The role of central bank money in payment systems”, CPSS Publications, No 55,August 2003.

BRODBECK, Simon “Virtual money – A new form of privately issued money in the moneymarket”, European School of Management, Paris, May 2007.