ECB keeps an eye on crypto currencies, but sees no risk

The European Central Bank (ECB) is opposed to their regulation but is keeping a close eye on crypto currencies, ECB Director Benoît Cœuré stresses in an interview with Le Journal du Dimanche. As the French Sunday newspaper reports at the end of October, the central banker emphasises that crypto currencies are not a “monetary risk”. What consequences the EU’s highest monetary authority will draw from the growing importance of the crypto market in the long term remains in the dark.

In view of growing markets and a seemingly unstoppable Bitcoin exchange rate, many people may be surprised that there is still a lack of regulatory intervention in Europe.

Nevertheless, the ECB is not looking the other way, this message is emphasised by Central Bank Director Benoît Cœuré. When asked why the ECB ignores crypto currencies, he explains at the end of October: We are not ignoring them.

At the moment crypto currencies do not pose a Bitcoin trader review

Rather, digital means of Bitcoin trader review payment are a marginal phenomenon, according to the central banker and economist, who worked at the École Nationale de la Statistique et de l’Administration Économique (ENSAE) before joining the French elite university and as a director of the highest French budgetary authority, the Agence France Trésor.

The 48-year-old Cœuré continues by saying that the fact that crypto currencies still have to be kept in mind is due on the one hand to their criminal potential. On the other hand, it is also important to consider the possible use in cashless countries.

Thus the ECB, which will not have remained unconscious of their growing market penetration, seems to take crypto currencies seriously in principle, despite this concession, the highest monetary authority of the EU thus once again rejects crypto currencies.

ECB President Draghi: Bitcoin regulation not in our crypto trader review

According to BTC-ECHO, ECB President Mario Draghi last emphasised that crypto currencies are not to be regulated at the end of September. He sees reasons for this in the lack of a foundation for a concrete handling of Bitcoin and other crypto currencies. It would simply not be within the ECB’s competence to regulate or even prohibit crypto trader review altogether.

The primary task of the ECB is to ensure price stability in the euro area and thus maintain the purchasing power of the euro. According to Mario Draghis, crypto currencies do not seem to fall within this field of work. A central bank acceptance of crypto currencies within Europe is therefore excluded for the time being.

Euro or nothing
In September, for example, Draghi had met with strong opposition to Estonia’s push to create a national digital currency. Previously, Kaspar Korjus, director of the Estonian e-residency programme, had proposed using an Estcoin as the national digital currency. However, this was countered by a strong headwind from the ECB:

Because no member state of the Eurozone is allowed to introduce its own currency. According to Draghi, the euro must always remain the only valid currency in the euro zone.

Thus the institution with seat in Frankfurt pursues a completely different strategy than central banks, which wave crypto currencies with the regulation club. In addition to the US financial market supervisory authority SEC, the authorities of South Korea, the People’s Republic of China, Canada and the United Kingdom, among others, intervene regulatively in their national crypto markets.

According to Handelsblatt, the Bank for International Settlements (BIS), an organisation of central banks, only advised central bankers worldwide in mid-September not to ignore crypto currencies such as Bitcoin. IMF Director Christine Lagarde also called in September for crypto money to be taken seriously.