"The cryptocurrency is not a paper currency, and it should provide the ground for public trust and the creation of public asset," said the member of the Central Bank's Jurisprudential Council, stating that virtual money is accredited.
According to the Public Relations Department of the Monetary and Banking Research Institute, and quoted by the news headquarters of 8th Annual Conference on Electronic Banking and Payment Systems, Hojatoleslam Sayed Abbas Mousavian, said: “If we were able to design a public asset that people, in return, would be willing to give them their money on a regular basis, in that case, money is formed in the society, which is different from the investing capability of a risk-taking group in society.”
Referring to the essence of the cryptocurrencies, he said: “We have encountered some currencies that either have intrinsic value, or a combination of intrinsic value and credit, or are purely credit. But there is a valid support behind them which takes responsibility for their function, and so is the defender of the value of money, and in certain circumstances, also has other responsibilities in various ways.”
“In the last decade, a new leap is taking place, that there is a currency that does not have a specific valid support and the creditor has no responsibility for its credibility, and it is the virtual money that is known today” he said, referring to the formation of the cryptocurrencies in recent years. “When we analyze it with available information, cryptocurrency, such as Bitcoin, is an electronic and Internet code that is given to the individuals and they extract it themselves or acquire it either by exchanging or by buying it via another money.”
"I do not consider Bitcoin as money.", said the member of the Central Bank's Jurisprudential Council on the legal base of Bitcoin and other Cryptocurrencies. “Because money must have consistency to be able to value other assets based on it. An item whose value is shifted nineteen times over the course of one year, indicates that the nature of this so-called money is not capable of being used as a benchmark for measuring assets.”
The Islamic Banking Theorist also stated: “Existing money has either intrinsic value, or credit value and their value are also appreciated by the creditor and its activities in support of this money.”
Having a few fundamental questions about virtual currencies, he said: Here we are faced with serious questions of who is the issuer of virtual money? Who is the creditor of this money? What responsibilities the creditor takes for this money? And what kind of support can the creditor provide? For example, in 2017, Bitcoin has increased from around $ 1,000 to $ 19,000 for one unit and still continues to break its record every day, indicating that there is not a sponsor who can support it, or does not have the power to support it.
Mousavian expressing that money is an indicator, a benchmark and a weight, added: “As we measure metric goods with meters, we want to preserve the value of assets with money. A money must eventually be stable, even relative stability in which assets, other goods and services and capitals are valued based on it.”
This member of the Central Bank's Jurisprudential Council pointed to Bitcoin again and emphasized: “As Bitcoin is known as a cryptocurrency in virtual networks, I sometimes call it a mysterious money. It's coded, and mysterious at the same time, because its dimensions are not known.”
It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in Milad Tower Conference Hall on 29th and 30th of Janurary 2019.