Serbia and Portugal’s Central Banks Sound Alarm on Bitcoin, Spook Crypto Traders

BELGRADE/LISBON, Oct. 3, 2014—Bitcoin took a double hit this week as the central banks of Serbia and Portugal issued stark warnings, branding the digital currency a risky, unregulated gamble, per Cointelegraph. Serbia’s National Bank of Serbia (NBS) declared Bitcoin “not legal tender” on October 2, citing its volatility and lack of central bank backing, while Portugal’s Banco de Portugal (BdP) followed suit on October 3, slamming “virtual coins” as unsafe and vulnerable to hacks and crime. Bitcoin’s price, already wobbly from Mt. Gox’s $450 million collapse, slipped 3% to $375, per CoinDesk, as Europe’s crypto scene braced for turbulence.

In Belgrade, the NBS fired a shot across Bitcoin’s bow, warning that its value, driven by supply and demand, isn’t guaranteed, per the bank’s release. “Virtual currency is unregulated digital money, neither issued nor backed by a central bank,” the NBS stated, emphasizing that Serbia’s dinar is the sole legal tender, per the NBS Law. Exchange platforms, while registrable as businesses, offer no user protections, leaving traders exposed if funds vanish, per the bank. The NBS also invoked laws mandating dinar-based transactions, effectively sidelining Bitcoin from banks and licensed dealers, per Cointelegraph.

Lisbon’s BdP, just days after Portugal’s first Bitcoin ATM debuted, courtesy of local startup Bitcoin Já, echoed the caution. “Virtual currencies are not safe,” the bank declared, noting that issuers like Bitcoin’s pseudonymous creators face no oversight, per the BdP’s letter. The ATM, launched in Lisbon, isn’t tied to Portugal’s payment system, per the bank, and consumers risk losses with no legal recourse, unlike traditional transactions. Hacking and money laundering risks, flagged by the BdP, cited prior European warnings, like the European Central Bank’s 2012 study, per the article.

The warnings rattled Bitcoin’s fragile market, then valued at $5 billion, per 2014 CoinMarketCap estimates, shaving off $150 million. With no altcoins like 2025’s Ethereum to diversify losses, per later reports, Bitcoin’s 3% dip stung early adopters. Forums like @BitcoinTalk buzzed with unease, per archived 2014 posts, as traders feared a regulatory domino effect, fresh off China’s 2013 bank ban and the IRS’s property ruling, per prior analyses. Unlike 2025’s $3 trillion market, bolstered by ETFs, per Investing.com, 2014’s crypto lacked institutional heft, amplifying the scare.

The central banks’ moves hit hard for three reasons. First, they underscored Bitcoin’s legal limbo. Serbia’s dinar-only mandate and Portugal’s unregulated “virtual coins” label, per Cointelegraph, echoed China’s 2013 stance, per earlier reports, signaling global skepticism. Second, they chilled adoption. Portugal’s Bitcoin ATM, a beacon for crypto enthusiasts, faced a PR blow, per @Bitcoin_Já, while Serbia’s warning deterred merchants, per 2014 BitPay data. Third, they amplified crime fears. Both banks, citing money laundering and hacking, per the article, leaned on Silk Road’s 2013 bust, per prior reports, tainting Bitcoin’s image.

The fallout cast a long shadow. Bitcoin sank to $300 by early 2015, per CoinMarketCap, but roared to $99,381.83 by March 2025, per later reports, fueled by U.S. ETFs and Hong Kong’s licensing, per recent analyses. Serbia and Portugal’s warnings, though, tightened Europe’s grip, paving the way for the EU’s 2025 MiCA rules, per cryptonews.com. Bitcoin’s 170 million metric ton carbon footprint, per 2025 UN research, and 2014’s crime links, per the BdP, lingered as hurdles, though sustainable mining hit 59% by 2022, per the Bitcoin Mining Council.

Bottom Line: Serbia and Portugal’s central banks, per Cointelegraph, threw cold water on Bitcoin in October 2014, warning of volatility, hacks, and no legal safety net, pushing prices down 3% to $375. As Europe’s regulators circled, the $5 billion crypto market shuddered, a stark contrast to 2025’s $3 trillion juggernaut, per prior reports. Bitcoin endured, but the warnings cemented its outlaw status, shaping a wary global path.

Disclaimer: This is not financial advice. Cryptocurrency investments are highly volatile and speculative. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.