Mario Draghi: The ECB has no regulatory powers …

Mario Draghi: ECB has no power to regulate bitcoin

European Central Bank Chairman Mario Draghi said his department has no authority to control cryptocurrencies. Writes about this CoinDesk.

Speaking at a meeting of the Economic and Financial Policy Council of the European Parliament, Draghi said: “The ban and regulation of bitcoin and other digital currencies is essentially beyond our powers.”.

He provided this comment in response to a Council question about whether the ECB is going to develop an appropriate regulatory framework or ban cryptocurrencies altogether, and whether Draghi thinks that the capital of fintech companies should be higher requirements in order to protect the banking sector.

Draghi noted that the ECB only intends to discuss the issue of the potential impact of cryptocurrencies, highlighting their scale, areas of application and economic impact as the main risk areas..

“We need to discuss what effect cryptocurrencies are having on the economy,” he said, adding that it’s too early to talk about cryptocurrencies as a viable method of payment..

Mario Draghi: The ECB has no regulatory powers ...

The ECB expresses concerns about cryptocurrencies and digital technology in general when it comes to cybersecurity. Draghi noted that countering cybercrime is one of the main issues on the ECB agenda.

Earlier this month, Draghi criticized Estonia’s proposed e-Residency project, in which the government intends to issue a national cryptocurrency called Estcoin, saying: “I will comment on Estonia’s decision: no EU member can issue its own currency. Eurozone currency is euro “.

Draghi was not the only ECB spokesman to speak out about cryptocurrencies. Bank Vice President Vitor Constanzio said last week that cryptocurrencies are purely speculative and compared them to the 17th century Tulip Mania in the Netherlands. He also noted that the ECB does not believe that technology can pose a threat to its policies..

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