“Bitcoin, the poster child for digital currencies, is proving something of a headache for central banks. Should they ban it, regulate it, embrace it, undermine it or just ignore it? Their best bet would be to let Darwinism take its course, and resist the regulatory impulse to interfere with either Bitcoin's survival or demise. And, if it lives, they should step aside and celebrate innovation rather than try to block its progress.
Bitcoin has always posed a challenge to central bankers' exclusive power to mint money, but it's never been clear how the official guardians of monetary stability would respond to it. Reports published in recent weeks by the European Central Bank and the Bank of England suggest they're scrambling to keep all of their options open. Schizophrenia is setting in.”
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