Central Bank cautions on cryptocurrencies for first time
Amid the growing interest towards virtual currencies globally and locally, Sri Lanka’s Central Bank yesterday said it has not given the licence or authorization to any entity or company to operate schemes involving virtual currencies, including cryptocurrencies and has not authorized any Initial Coin Offerings (ICOS).
The term ‘virtual currencies’ is commonly used to refer to digitally created representations of value that are issued by private developers and denominated in their own unit of account.
Common examples of virtual currencies are cryptocurrencies such as Bitcoin, Litecoin and Ethereum. Virtual currencies are not central bank-issued currency.
Virtual currencies such as cryptocurrencies use decentralised peer-to-peer digital networks to authorize transactions.