The President of the European Central Bank, Luis De Guindos, expressed his opinion that cryptocurrencies should be regulated the same way conventional assets are regulated. He made the statement in a presentation at a series of Summer courses by the European Parliament as well as the European Union.
Luis De Guindos who has been known for his skepticism towards cryptocurrencies stated that he isn’t against the crypto assets but they should be subjected to same regulatory framework as that of other financial assets;
“I would not prohibit them, but issuers must be required to follow the same conditions as those of other financial assets and avoid everything that has to do with money laundering or terrorist financing.”
The Bank’s Vice President also stated that cryptocurrencies can be easily used for illicit activities because of their nature of anonymity. This has made him refer to the asset class as “crypto asset” as De Guindos doesn’t see cryptocurrencies as a valid means of payment. He also added that cryptocurrencies do not contribute to the financial stability of the region as reported by Coingape.
Going forward, the Vice president stated that the new asset class does not have an economic basis compared to other conventional assets. He believes the value of cryptocurrencies is fueled by scarcity and not relation with other assets.
De Guindos is Bullish on Digital Currencies
However, De Guindos has given positive comments on the Digital Euro that is currently in works by the European Central Bank; examining the feasibility of the digital currency. He stated the digital Euro is much needed;
“Something we just have to do. It’s not trivial in terms of the potential implications for financial stability and for monetary policy, so we will have to calibrate this project to minimize any potential negative consequences it could have.”
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