Mario Draghi, the president of the European Central Bank (ECB), said during a dialogue with students that cryptocurrencies are not real currencies. He has also stated that cryptos are “very, very risky assets” but they do not really have to be something for central banks to be worried about.
Mario Draghi Talks About Cryptocurrencies
As cryptocurrencies expand in the market, there is a larger interest from individuals about these digital assets and how they work. Regulatory agencies have now a larger pressure from the media and institutions to start regulating these digital assets. However, Mario Draghi, the president of the ECB, is not so sure whether central banks should be regulating the market.
During this conversation with students, he asked who is behind cryptocurrencies and compared it with the Euro, saying that the European common currency is backed by the ECB. He stated that digital assets have large price oscillations and that they are considered by regulators as speculative assets.
“Cryptocurrencies or bitcoins or anything like that is not really currencies or assets. A Euro is a Euro, today, tomorrow, is always a Euro, and the ECB is behind the Euro, who is behind the cryptocurrencies? “
Draghi explained that at this point in time, virtual currencies are not significant enough to affect our economies on a large scale.
On the matter, he commented:
“At this point in time, they are not significant enough in the entity so that they can affect our economies in a macro way. We tend to consider them speculative assets and highly risky.”
Mario Draghi has also explained that because of the way in which they are currently operating they do not require to be monitored or regulated. It is just something that falls within the consumer’s protection competence. The intention is to make sure that people that purchase these digital assets know the risks involved.
Mario Draghi is close to an end of his eight-year term as the president of the European Central Bank and a new contender could have a different point of view regarding cryptocurrencies. Nonetheless, some individuals believe that fewer regulations are better for the market that more.
— European Central Bank (@ecb) May 8, 2019