Why ECB President Mario Draghi Is Against Cryptocurrencies?

Adoption of the Estcoin would represent a landmark moment for cryptocurrency. Yet, ECB President Mario Draghi is Against Cryptocurrencies and he has reacted to the idea of Estonia establishing national cryptocurrency.

11 September, AtoZForex The idea for ‘Estcoin’ was originated by Kaspar Korjus, the head of Estonia’s e-Residency project. A project that offers citizens of the world “e-residency,” a digital ID for non-Estonians. Since the idea of Estcoin was made public, Estonia became the first European country to openly discuss the prospect of a national cryptocurrency.

Ethereum founder provided Estcoin feedback

Estonia even sought the support of Ethereum founder Vitalik Buterin, for the issue of Estcoin. Estonia could have launched their national cryptocurrency via an initial coin offering (ICO). Vitalik Buterin commented that Estonia could have used Estcoins to incentivize investors to support the success of a country in a way that is not currently possible through existing means of raising international finance. Adoption of the Estcoin would represent a landmark moment for cryptocurrencies, indicating widespread adoption.

What would happen if Estonia issued its own crypto tokens? This question of an ambitious new proposal that, if implemented, has the potential to benefit both the country and its e-residents. The e-Residency program can allow anyone to access Estcoins in the world. Yet, Estcoin remains an idea, but an idea worth considering, because it has the potential to become reality.

ECB President Mario Draghi Is Against Cryptocurrencies

The rise in popularity of cryptocurrencies has been worrying the ECB, which has said they could, in theory, erode its control over the supply of money. The European Central Bank’s president rebuffed a proposal by the Estonian government to launch a state-managed digital currency. ECB President Mario Draghi is against cryptocurrencies, as he reaffirmed that the euro was the only valid money in the euro area:

“No member state can introduce its own currency; the currency of the euro zone is the euro.”

Through this statement, the Eurozone seems to be barring the launch of Estcoin to proceed. Meanwhile, China’s ban on ICO shockwaves through the burgeoning token markets. Raising again the mixed global sentiment toward cryptocurrencies. To conclude, ECB president Mario Draghi has put the proposal of Estonia’s digital currency back to the shelf, for now.

What are your thoughts of Mario Draghi’s response to Estcoin? Share with us your opinion in the comments section below.

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