BRUSSELS, BELGIUM – Mario Draghi, president of the European Central Bank, has recently made a statement stating that organization does not have the power to regulate cryptocurrencies.
“It would actually not be in our powers to prohibit and regulate,” said Draghi to the European Parliament’s Committee on Economic and Monetary Affairs.
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His statements were made in a reply to a question asked by the committee over whether the European Central Bank would ban cryptocurrencies all together or work towards regulating the structure of the technology.
“We have to ask what effects cryptocurrencies have on the economy”
Draghi’s main concern of cryptocurrencies is cybersecurity, emphasizing that safeguarding against cyber threats is essential to the European Central Bank’s organization.
Earlier this month, Draghi condemned the propositioned initiative by Estonia’s e-Residency plan for a national cryptocurrency called “estcoin.”
“No member state can introduce its own currency. The currency of the Eurozone is the euro.”
Draghi is not the only European Central Bank official to mention cryptocurrencies.
Vitor Constancio, vice president of the European Central Bank stated that he believes cryptocurrencies are a hypothetical asset.
Constancio associated them to “tulip mania” – the trading bubble faced in the Netherlands in 1637.