Marc Serafino
Good news for crypto-lovin’ Europeans — the European Central Bank (ECB) does not have the authority to regulate cryptocurrencies, according the Bank’s president Mario Draghi.
Making his statements to the European Parliament’s Committee on Economic and Monetary Affairs, Draghi said that it would not be in his powers to prohibit and regulate bitcoin and other cryptocurrencies.
His comments came as a response to a question from the committee asking whether ECB would issue a regulatory framework or a ban on cryptocurrencies, and whether there is a need to protect the banking sector.
Draghi said that ECB has yet to discuss the potential impact of cryptocurrencies. “We have to ask what effects cryptocurrencies have on the economy,” he said, adding that they are still too immature to be considered a viable method of payment.
He also mentioned cyber-security, emphasizing that protecting against cyber risks is central to ECB’s agenda.
But it has the power to influence…
It was at the beginning of September when Draghi criticized a proposal by the Estonian government to launch a state-managed digital currency, reaffirming instead that the euro was the only valid money in the euro area.
“No member state can introduce its own currency. The currency of the Eurozone is the euro,” he said at the time.
Estonia was exploring the prospect of a digital currency managed by the government and offered to the country’s more than 20,000 e-residents, which are foreign entrepreneurs who have opened a company in the country via the web.
The bold idea for the so called “estcoin” came from Kaspar Korjus, the head of Estonia’s e-Residency project. And, as crypto fans ourselves — we can’t but love it.
Europe will remain important for cryptocurrencies
No matter what Mario Draghi and his associates think/say about Bitcoin and other cryptocurrencies, Europe will remain the important market for these digital assets. Perhaps at some point in the future some framework and/or regulation is issued, perhaps not. Entrepreneurs will continue to find their way to invest and innovate in the space nonetheless, and it would be foolish to stand on their way.
Meanwhile, we care to know what you — our reader — is doing about it? Have you invested in some digital currency and if so – how did that work for you? You know our attitude about cryptocurrencies, and now we want to hear you out. Do share your comments below or join the conversation on Facebook. Talk to you soon…
