Digital currencies are essentially unstable, states the European Central Bank

According to a new report released by the European Central Bank, digital currencies are described as "inherently unstable" but they a remain as a potential to be used as payments.

The report by the central bank, looking over all the national central banks in the eurozone, implied digital currencies may affect the ECB's functioning. The ECB, however, did not state that digital currencies pose a threat to its progression because digital currencies are not adopted extensively by consumers and businesses.

The author's of the report stated: "Digital currencies do have the potential to have an impact on monetary policy and price stability, financial stability and the smooth operation of payment systems in the euro area."