Bitcoin News about Europeon Parliament’s Committee.Mario Draghi reportedly made the statement following a question from the European Parliament’s Committee on Economic and Monetary Affairs regarding whether or not the ECB plans to develop a regulatory apparatus pertaining to bitcoin, and what risks cryptocurrencies may pose to the European economy.
According to a Google translation of a story posted by Eunews.it, Draghi stated that after considering “the magnitude, user acceptance and impact on the real economy [of bitcoin]…it would be very premature to consider it as a payment instrument for the future”. The ECB president stated that the ECB “has not yet had a discussion” regarding the topic, adding that “it would not be [within] our power to prohibit or regulate [bitcoin]”. Draghi also expressed the ECB’s intention to assess the cyber risks associated with bitcoin and cryptocurrencies.
Draghi’s Statements Echo Those Made Regarding Blockchain Technology During an Event at Trinity College in Dublin
Bitcoin is Outside the Regulatory Jurisdiction of the European Central Bank
During a Youth Dialogue event at Trinity College in Dublin, the ECB president answered a question on whether “new technologies, specifically blockchain, have a role in monetary policy [in] the future.” Draghi responded “we at the ECB are looking into this, and we have now been looking at this for some time. One conclusion is that, at this point in time, the technology is not mature [enough] yet… to be considered in either central bank policy-making, or in the payments system. We have to look at what progress this technology will [make] in the future.”
At both events, the ECB president emphasized the European Central Bank’s desire to assess the cyber risks associated with new technologies. At Trinity College in Dublin, Draghi described “cyber risk” as the “dominant [issue] today” in the “realm of digitalization.” He added that “any innovation, like [blockchain], will be screened from [the] viewpoint [of] how much our exposure to cyber risk is going to go up because we embrace a new technology.”
Cryptocurrencies Risks discussed in Monetary Affairs on Europeon Banks.
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