Vice President of the European Central Bank Says Cryptocurrencies Should be Regulated Like Other Assets
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.”
What do you think? Share your comments below
Latest Episode on Inside Blockchain
Crypto News Update
How To Open a Huobi Account and Make Your First Trade.
Huobi is a crypto exchange where users can buy, sell and borrow cryptocurrencies, creating a complete ecosystem for knowledgeable crypto...
Gala FIlms: Web3 meets Films
Gala Film Nodes are services provided by the Gala team where anyone can purchase a Node to grant access to...
List of African Countries That Have and Will Launch CBDC
African countries are exploring the virtual form of their currency which can improve their approach to exchanges and cash flow...
A comparison of Aptos and Sui
Last year, functional Layer 1s had great fundamentals that facilitated ecosystem pumps. The pumps were associated with L1s that had...
A detailed insight into Nomad bridge protocol exploit
The Nomad bridge was recently exploited for over $190m. While the complete story of the hack keeps unfolding gradually, we...