The vice president of the European Central Bank (ECB) has said that investors are taking a ‘risk’ by buying bitcoin at its high price.
Speaking to CNBC on Wednesday, Vitor Constancio, said:
It’s a very particular asset, it’s a speculative asset by definition looking to the developments in its price. Investors are taking that risk of buying at such high prices.
The president of the European Central Bank believes cryptocurrencies like bitcoin do not pose any threat to the central bank-dependent financial system.
Speaking to the European Parliament on Monday, ECB President Mario Draghi played down the impact of digital currencies on the traditional centralized banking system, claiming their adoption and impacted are too ‘limited’. Cryptocurrencies do not cause any concerns to the central bank’s control of the money supply in the European Union, Reuters quotes the central banker as stating.
European Central Bank (ECB) vice president Vitor Constancio has said that cryptocurrencies will never replace the fiat system.
According to a report from Reuters, Constancio said that they are a ‘misnomer’ and that they are merely a commodity used as a speculative asset. While he did concede that they had some use this was only in ‘very special circumstances’ such as in countries that were in an economic crisis.
Companies that handle digital currencies are being forced to open bank accounts elsewhere as British banks continue to shun them.
Investor interest in digital currencies has surged this year with bitcoin’s price rising to a record high of $6,200 over the weekend, pushing its market cap to $102.8 billion. Yet, despite this traditional banks remain weary of the market.
European Central Bank (ECB) chief Mario Draghi says that bitcoin and other cryptocurrencies are not mature enough for regulation.
As reported by CNBC, the ECB president made these comments during a recent press conference, stating that the bank is cautiously observing the development of bitcoin and other fintech products.
European Central Bank (ECB) president Mario Draghi stated that the agency does not have the authority to regulate bitcoin and other cryptocurrencies.
ECB Does Not Have Authority to Regulate Bitcoin
Draghi made these comments in a meeting of the European Parliament’s Committee on Economic and Monetary Affairs.