ECB will not regulate cryptocurrencies, according to the latest remarks from the EU central bank's President, Mario Draghi. He also has discussed whether he would recommend buying Bitcoin in response to a question from one of the college student. He has signaled that he would think “carefully” prior to buying Bitcoin.
14 February, AtoZForex – The President of the European Central Bank, Mario Draghi, has again spoken in regards to the cryptocurrencies. This time, he has stated that his institution does not have anything to do with the regulation of cryptocurrency market.
ECB will not Regulate Cryptocurrencies, Mario Draghi Says
The ECB is holding regular video series #AskDraghi, where the users of Twitter have the opportunity to ask questions that are then directed to the former Italian central banker. Some of the questions were focused on the matter whether the ECB would be to regulate Bitcoin in the near future. Mr. Draghi has stated the following:
"It's not the ECB's responsibility to do that."
Draghi also has discussed whether he would recommend buying Bitcoin in response to a question from one of the college student. He has signaled that he would think “carefully” prior to buying Bitcoin. He has explained that he does not see it as a currency at all. While the value of the euro is stable, he stated that the value of Bitcoin “oscillates wildly."
Moreover, commenting on the decentralized nature of cryptocurrencies, he has stated:
"The euro is backed by the European Central Bank. The dollar is backed by the Federal Reserve. Currencies are backed by the central banks or their governments. Nobody backs bitcoin."
Cryptocurrencies Impact on Economy
This is not the first time Mr. Draghi has commented on cryptocurrencies and the regulation of this market. The president of ECB has stated back in September 2017 that the ECB itself has “no power” to regulate Bitcoin. Moreover, in November, he has stated that cryptocurrencies have a limited influence on the national economy.
Pointing out the relative insignificance of the cryptocurrencies, Mario Draghi stated that they do not appear as a threat to the ECB Euro control. He also added that there is a lack of adoption of digital currencies within the 27-member economic union. Thus, according to Mr. Draghi, cryptocurrencies’ influence on the economy is limited.
He has stated:
“We think that all this is pretty limited. So it’s not yet something that could constitute a risk for central banks.”
Mr. Draghi also added that people must “cherish” innovations in the financial sector. Yet, he noted that it is vital to be wary of any potential risks.
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