Categories: Bitcoin Business

Bitcoin No Threat Yet but Crypto ‘Phenomenon’ Needs Monitoring: European Central Bank

Click here to view original web page at www.ccn.com
Bitcoin is no biggie, according to the European Central Bank.

By CCN: The European Central Bank (ECB) has found that crypto does not pose risks to financial stability in the Eurozone. The central bank does recommend, however, that European legislatures create a uniform approach to crypto-assets.

Crypto Market? Too Small to Matter, ECB Says

The ECB has set up an advisory committee called the Crypto-Assets Task Force (ICA-TF) to examine the ramifications and impact of cryptocurrencies on the European economy. Their May 2019 report, “Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures”, has some interesting findings.

The Task Force found that, at the current market size, crypto assets do not represent a threat to the European economy or Euro area monetary stability:

“Crypto-assets do not fulfil the functions of money and, at the current stage, neither do they entail a tangible impact on the real economy nor have significant implications for monetary policy.”

Implicit in this finding is that it would be different if the crypto market were larger. Parsing the language the Task Force used in the report, one senses that the ECB is advising regulators across Europe to be prepared for when crypto markets are larger.

Be Ready for Expansion

While the report finds that the “very low number of merchants that allow the purchase of goods and services with bitcoins indicates no influence of the most prominent crypto-asset on price-setting,” it also warns that the influence of crypto could grow.

The report concludes by highlighting the potential for cryptos to become disruptive to the European economy as the market grows and their use becomes more widespread. Per the Task Force, it is:

“… important that the ECB continue to monitor the crypto-assets phenomenon, raise awareness and develop preparedness for any adverse scenarios, in cooperation with other relevant authorities.”

Lack of a Uniform Approach Risky

The Task Force suggests that the lack of a uniform approach to cryptocurrencies needs to be addressed. The European Central Bank has long been dismissive of cryptocurrencies, with president Mario Draghi recently declaring:

“Bitcoins or anything like that are not really currencies, they are assets. A euro is a euro – today, tomorrow, in a month, it’s always a euro. And the ECB is behind the euro. Who is behind the cryptocurrencies? So they are very, very risky assets, the value of which oscillates – as you’ve seen – wildly.”

Watch again: Mario Draghi answers a student’s question on cryptocurrencies #ECBYouthDialogue #GenerationEuro pic.twitter.com/5VmHr3sxNw

— European Central Bank (@ecb) May 8, 2019

The central banker’s vice president said at the end of 2017 that cryptocurrencies would never replace fiat. As the report points out, cryptocurrencies are not currently regulated in Europe. Should the market become more significant, expect that to change.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Price Forecast: BTC/USD Volume Could Indicate A Breakout

Bitcoin’s daily volume spike could create a necessary condition for a breakout. Traded price ranges continue to constrict. Bitcoin’s Bullish… Read More

4 hours ago

Billionaire Tim Draper: Bitcoin Will Hit $250,000 By 2022

Billionaire venture capitalist Tim Draper told BlockTV that in the next several years, Bitcoin could reach $250,000 per coin. "$250,000… Read More

4 hours ago

Maduro Mandates Petro-Financed Public Housing Scheme in Venezuela

Embattled Venezuelan leader Nicolas Maduro looks to expand Petro adoption through a new housing initiative. | Image: REUTERS /THIRD PARTY.… Read More

4 hours ago

Malware InnfiRAT Targets Bitcoin And Crypto Wallets

The malware named InnfiRAT could be stealing bitcoins and cryptocurrency wallet information. It is usually downloaded through email attachments and… Read More

4 hours ago

Bitcoin (BTC) Interest in China Driven by Price Action News

Share Tweet Send Share Baidu search trends in 2019 show Chinese bitcoin interest being driven largely by price action news.… Read More

4 hours ago

Crypto and the Latency Arms Race: Crypto Exchanges and the HFT Crowd

Max Boonen is founder and CEO of crypto trading firm B2C2 . This post is the second in a series… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More