[News] The Europe Central Bank and the cryptos

in cryptocurrency •  7 years ago 

In the European Parliament plenary debate on the ECB Annual Report for 2016 (Strasbourg, 5 February 2018), President Mario Draghi make some brief declarations about cryptocurrencies:

 One or two speakers touched on Bitcoin and other cryptocurrencies. Let me first say that we are not observing a systemically relevant holding of digital currencies by supervised institutions – by banks, in other words. Actually, the credit institutions established in the European Union are showing a limited appetite for digital currencies like Bitcoin, notwithstanding the high level of public interest. However, recent developments, such as the listing of Bitcoin futures contracts by US exchanges, could lead European banks too to hold positions in Bitcoin, and therefore we will certainly look at that.However, we should understand that Bitcoin and other digital currencies are in the unregulated space and should be regarded as very risky assets. Virtual currencies are subject to high volatility and their prices are entirely speculative. Banks should measure the risk of any holdings of digital currencies in their portfolio accordingly. Right now, digital currencies are not subject to a specific supervisory approach. Work is under way in the Single Supervisory Mechanism to identify potential prudential risks that these digital assets could pose to supervised institutions. 

Then the central bank's chief supervisor Daniele Nouy told CNBC that  "We scrutinize the issue in a regulatory perspective, we are ready to do something if it was needed, but so far it's not exactly very high on our to-do list". 

On the other side,  ECB board member Yves Mersch said that “Since this hype accelerated at the end of last year it has moved higher up on the agenda . . . what I do not like is the public hype driving this thing”. And he added: “We are currently more concerned about the social and psychological effect they seem to have ... there is so much money flowing in that it’s like a gold rush — but there is no gold

So, as you can see, even at the top of the European Central Bank there are different points of view about cryptos.

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Waiting to see what will happen in Europe after they canceled all the prepaid cards released by wavecreast. I'm thinking that they are planning something.

You are very correct. What ever it is that they could be planning, i believe would be to the advantage of cryptos and soon we will see what they are up to.

Thanks for posting this, I like knowing how other countries are viewing cryptos!

I have a banker female friend who once asked me of how she could secure a bitcoin wallet and somewhere along the long talk i had with her she said that sustainability of digital currencies is one big headache that financial institutions are indirectly afraid of, owing to the fact that its unregulated for now.

with the advent of virtual currency, bank credit assets decrease gets to manage the customer's money, this is a cause for concern by bank credit and become big problems.
thanks for this news @paolobeneforti

Now many countries are beginning to consider the existence of the bitcoin in the country, because there is no guarantee of legal but very interest in the bitcoin citizens like said President mario draghi

good post, interesting to follow next