European Central Bank President Explains Why a Euro is a Euro and Claims Bitcoin is an Asset
A few days ago, Mario Draghi the President of the European Central Bank (ECB), talked about the Euro and virtual currencies. After being asked about digital currencies, he implied that the Euro is not an asset but just a currency. About Bitcoin (BTC), he said that it looks like an asset, like other digital currencies.
Bitcoin Is An Asset The Euro A Currency
Similar to the famous Dogecoin meme “1 doge is 1 doge,” Draghi said that one Euro will always be one Euro. About it, he mentioned that no matter when each Euro will be equal to a Euro and the European Central Bank will be behind it.
What he didn’t say is that fiat currencies can be more or less valuable depending on the monetary policies applied by central bankers. There are countries such as Venezuela or Argentina where citizens do not trust their fiat currencies because although each Bolivar or Argentine Peso remained the same, their value changed over time.
He then asked who is behind cryptocurrencies. He claims that they are very risky assets and that they have a price that fluctuates wildly. Behind Bitocin there are individuals and companies that want to be part of the network and that run their own nodes in order to make the network more secure and make sure the network operates as it should.
At the same time, there are miners that confirm that the transactions in the network are genuine. These miners use energy that becomes enforceable code. In his way, individuals cannot create more money and work on a pyramid scheme.
About cryptocurrencies, Draghi said:
“We tend to consider them as highly risky speculative assets but their monitoring and regulation does not concern the Central Bank. It’s more about consumer protection because we want to make sure that people who buy these assets know what they are doing and are aware of the risks they are taking.”
Central Banks do not have jurisdiction or authority over digital assets, even when there are several companies asking and requesting central banks to start regulating the space. This should apply not only to European countries but also to other nations such as India, where the Reserve Bank of India (RBI) is taking ver hard measures against digital assets and crypto-related companies in the country.