European Central Bank has No Power to Regulate Cryptocurrencies

0
Draghi ECB Cryptocurrencies

European Central Bank (ECB) President Mario Draghi, stated that the ECB doesn’t have the power to regulate cryptocurrencies.

Draghi stated in his own words that “it would actually not be in our powers to prohibit and regulate” the bitcoin and current existing digital currencies. Dragis statements at the European Parliament’s Committee on Economic and Monetary Affairs about cryptocurrencies were a pretty surprise for the crypto community around the world and came in response to the comments on the question from the committee – whether ECB intends to issue a regulatory framework or an all out ban on cryptocurrencies! Also the question if higher financial investments for fintechs are required in order to protect the banking sector.

The ECB will have to discuss a potential impact of the cryptocurrencies. The analysis include the risk occurance by cryptocurrencies due to the scale, how they are used and the real economic impact.

“We have to ask what effects cryptocurrencies have on the economy”

….Draghi also mentioned that “they are still too immature to be considered a viable method of payment”, which is a pretty interesting view.

What the ECB is most concerned about cryptocurrencies as well as the linked digital innovation, is the cybersecurity he said. Cyber risks seems to be a central and critical topic on the current ECB agenda.

ECB vice president Vitor Constancio also stated last week that cryptocurrencies are a totally speculative asset and compared them with the past “Tulip Mania” of the 17th century trading bubble in the Netherlands. Also worth to mention that Constancio said the ECB doesn’t see the cryptocurrency technology as a “threat to central bank policy” which is a quite positive statement so far.

“I will comment on the Estonian decision: no member state can introduce its own currency. The currency of the Eurozone is the euro.”

… Draghi stated earlier this month and also¬†criticised the current “Estonian Initiative” of a so called “eResidency project” which makes it possible to launch an own national cryptocurrency with the name “Estcoin“!

LEAVE A REPLY

Please enter your comment!
Please enter your name here