Bundesbank says there are no Eurozone cryptocurrency plans

Bundesbank board member, Mr. Thiele revealed from his interview with Euro am Sonntag that there are currently no Eurozone cryptocurrency plans. Yet, will the officials change their mind over time? 

25 December, AtoZForex – More countries across the globe are looking into how the blockchain technology can benefit its economy or administrative systems. A good example of this is the plan of Estonia to introduce its national digital currency Estcoin. However, in an earlier comment by the ECB president, Mario Draghi does not see any potential in such a national digital coin nor a cryptocurrency for the EU bloc.

Following Draghi’s remarks, Carl-Ludwig Thiele, a board member for Bundesbank, has verified that the Eurozone is not developing a digital currency for the bloc. Yet, the statement Mr. Thiele is contradictory to an earlier statement made by the head of Bundesbank, Jens Weidmann. Who recommended that a digital currency similar to Bitcoin could possibly protect Europeans.

There are no Eurozone cryptocurrency plans yet

In an interview published on Saturday, Mr. Thiele told weekly Euro am Sonntag that there is a debate going on about the benefits of utilizing digital central bank money. Such a Eurozone could be useful in a closed system of the EU to settle transactions. Thiele commented: “Digital central bank money analogous to cash is currently not in sight.” In spite of Mr. Thiele’s comment, the debate of the officials are still ongoing and their mind can change over time.

Especially when the EU bloc can see that more countries are weighing the benefits of a national cryptocurrency. Countries like Russia and Dubai have both started working toward nationalizing digital currencies.

Bundesbank Cryptocurrency investments warning

Due to the increasing popularity of the cryptocurrency market, Mr. Thiele also cautioned investors about the risks of investing in cryptocurrencies: “Bitcoin shows high-value fluctuations, not only in comparison to the euro. It is therefore not suitable for storing value.” 

The concerns of the cryptocurrency bubble have also caught the attention of the ECB. However, Mario Draghi made it obvious that it is impossible to ban the use of Bitcoin. In an earlier statement this year, he stated that: “It would actually not be in our power to prohibit and regulate them. We have to ask what effects cryptocurrencies have on the economy. And still far too immature to consider it as a viable payment methodology.”

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