Regulating crypto currencies ‘not exactly very high on our to-do list’, ECB

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Regulating crypto currencies ‘not exactly very high on our to-do list’, ECB

On Wednesday February 7, the European Central Bank moderated its stance regarding the cryptocurrency regulation. ECB described it as something which is not very high on ECB’s to-do list.

Daniele Nouy, the ECB’s Chair of Supervisory Board added that although she had no clue that whether the new regulatory moves on the crypto shall come from Europe in the future, involvement of the ECB-regulated banks is extremely low in this matter.

European Central Bank said that the regulation of bitcoin and other cryptocurrencies is far from being a priority matter for ECB. She said that we are observe this issue in a regulatory perspective if something comes up, we are ready to take the necessary measures but so far regulating cryptocurrencies is not really high on ECB’s to-do list.

Nouy said that ECB needs to look out and keep an eye on the cryptocurrencies as new risks emerge like bitcoin futures contracts on the U.S stock exchanges. She said that so far the time being, there have been no signs of any interests developing among European lenders regarding cryptocurrencies.

Bitcoin has dropped drastically in the recent days and has dropped below $6000 for the first time since the mid of November. Bitcoin was trading over the $7000 level on Wednesday as the cryptocurrency market stabilized itself.

The total cryptocurrency market was on its lowest point on Tuesday and saw a whopping $550 billion wiped clean of its value.

The ECB President Mario Draghi said on Monday that the supervisory board of the bank was working to see if the digital currencies posed any financial stability risks. Draghi said in a speech that was delivered to the European Parliament, that European banks have limited appetite for digital currencies like bitcoin and others.

The comment from the ECB’s chair of supervisory board came ahead of an increasingly anticipated G20 Summit that is to be held in coming March in Argentina. At the summit, cryptocurrency regulation shall form the main topic of discussion as reported by an increasing number of sources as well as the European Central Bank.