Bank of Finland Researchers Call The Bitcoin Revolutionary

September 12, 2017 12:00 pm Published by

The Bitcoin was called “revolutionary” by researchers at a Finland central bank, the Coindesk reported Monday.

The staff paper, written by Gur Huberman, Jacob Leshno and Ciamac Moallemi, was released on Sept. 5, said the report. It served as an investigation into the Bitcoin infrastructure.

The paper argued the digital currency system called for “monopoly run by a protocol,” protecting against manipulation to some extent, the report said.

“Bitcoin is a monopoly run by a protocol, not by a managing organization” — Finland central bank staff paper

“Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules,” the authors wrote. “Monopolies are often regulated to prevent or at least mitigate their abuse of power.”

The paper also stated this as a reason why the Bitcoin could not be regulated, said the report.

“Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts,” the paper said.

The paper included a disclaimer saying the views within it did not represent an official stance or statement from the Bank of Finland, the Coindesk said. Still, the paper is considered a legitimate source due to the central bank’s close relationship with technology.

In 2016, the bank held a seminar about blockchain involving academics, companies and regulators, the report said. The seminar was intended to support local research, an effort backed by the government., Shyma Hossain

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