Mario Draghi: “Who Is Behind the Cryptocurrencies?”
— European Central Bank (@ecb) May 8, 2019
The central banker then raised questions about the origins of cryptocurrencies.
“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.”
Draghi does not believe that cryptocurrencies pose a significant impact on existing fiat-based economies.
“At this point in time they are not significant enough in their entity that they could affect our economies in a macro way.”
He believes they are just speculative assets that perhaps need regulation. The macro effect of cryptocurrencies has yet to be seen.
Bitcoin Not Important Enough for ECB to Regulate
Several million people hold cryptocurrencies, and many millions trade them. Still, the overall impact of cryptocurrency on real-world economies has so far been limited.
In the case of Venezuela, inflation and economic woes have left many with no choice but to secure their money in cryptocurrency. Bitcoin and Dash have acted as a pressure relief valve that didn’t exist in previous eras.
Draghi believes that the ECB currently has no role in the crypto space and that the responsibility of regulating cryptocurrencies mainly falls on consumer protection agencies at this point.
“And so we tend to consider them as speculative assets, highly risky, but as far as the rest is concerned, it’s not really something that pertains to the central bank,…