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Cryptocurrency does not threaten the financial system ECB report

Recently, the European Central Bank (ECB) presented a report entitled Cryptoactives: implications for financial stability, monetary policy, payments, and market infrastructure. The paper analyzes the explicit and potential impact of digital currencies on the global economy and the financial stability of individual regions. The regulator emphasizes that since crypto assets are not considered as an alternative to deposits and cash, they do not pose a threat so far.

Also, currently cryptocurrency does not fall under the definition of money, and their use is limited at the technical and state level, the report says.

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According to analysts of a European bank, one of the key obstacles to the further spread of digital currencies as money is the lack of “the absence of a specific institution (for example, a central bank or a monetary authority) protecting the value of cryptoactive assets.”

The regulator also notes that special attention should be paid to the development of the market of steyblockcoins, “because they can become less volatile if they are provided with reserves of central banks.”

This opinion has already been voiced more than once in the ECB itself, namely, Francois Villerois de Galo, who declared that he sees the future of digital assets in stableblock as well as other representatives of central banks.

Note that the European Central Bank still does not take the cryptocurrency sector seriously. Thus, in one of his interviews, the head of the ECB, Mario Draghi, noted that the regulator does not recognize Bitcoin as currency, and besides, digital assets have not yet reached the level to influence macroeconomics.

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