💎 Mario Draghi, president of the European Central Bank (ECB), indicated that his institution does not have the authority to regulate crypto-currencies.
💎 Speaking with the statements in the EC Committee on Economic and Monetary Affairs, Draghi said that 'in fact, it is not our responsibility to prohibit and regulate' bitcoin and other digital currencies.
💎 The comments came in response to a question from the committee about whether the ECB intends to work out a regulatory framework or a complete ban on crypto-currencies, and Draghi believes that higher capital requirements for financial institutions are needed to protect the banking sector.
💎 According to Draghi, the ECB has not yet discussed the potential impact of the crypto currency, but the likely areas of analysis include the risk created by crypto currency due to its scale, use and economic impact.
🔥'We need to ask what the consequences of the crypto-currencies in the economy are,' Draghi said, adding that they are still too immature to be considered a viable method of payment.🔥
💎 According to him, the main problem of the ECB regarding crypto currency, as well as digital innovations, is cybersecurity, stressing that protection from cyber risks plays a central role on the ECB agenda.
💎 Earlier this month Draghi also criticized the proposed initiative of the Estonian e-Residency project to create a national crypto currency called 'estcoin', saying that:
🔥'I will comment on the decision of Estonia: no member state can introduce its own currency. The euro area currency is the euro. '🔥
💎 Draghi is not the only high-ranking official of the ECB, who in recent days commented on the Crypto-currency.
💎 Last week, vice president of the central bank Vitor Constancio said that the crypto-currencies are purely speculative asset and compared them with the 'tulip mania' - a trading bubble of the 17th century that took place in the Netherlands. Constancio said that the ECB does not see this technology as a 'threat to the policy of the central bank.'
🤗 source: http://gesellberg.com 🤗