[2017-09-26] Mario Draghi: European Central Bank Has 'No Power' to Regulate BTC

[moriskarlov]

Mario Draghi, president of the European Central Bank (ECB), has indicated that his institution does not have the powers to regulate cryptocurrencies.

Making his statements to the European Parliament's Committee on Economic and Monetary Affairs, Draghi said that "it would actually not be in our powers to prohibit and regulate" bitcoin and other digital currencies.

The comments came in response to a question from the committee over whether ECB intends to issue a regulatory framework or an all-out ban on cryptocurrencies, and whether Draghi felt that higher capital requirements for fintech were required to protect the banking sector.

Draghi revealed that the ECB has yet to discuss the potential impact of cryptocurrencies, but likely areas of analysis include the risk posed by cryptocurrency due to its scale, usage and economic impact.

"We have to ask what effects cryptocurrencies have on the economy," Draghi stated, adding that they are still too immature to be considered a viable method of payment.

The primary concern for the ECB surrounding cryptocurrencies, and digital innovation more generally, is cybersecurity, he went on, stressing that protecting against cyber risks is central to the ECB's agenda.

Earlier this month, Draghi also criticised the proposed initiative by Estonia's e-Residency project to launch a national cryptocurrency called "estcoin," reportedly stating:

    "I will comment on the Estonian decision: no member state can introduce its own currency. The currency of the Eurozone is the euro."

Draghi is not the only senior ECB official to comment on cryptocurrencies in recent days.

The central bank's vice president, Vitor Constancio, made headlines last week when he stated that cryptocurrencies were a purely speculative asset, and compared them to "tulip mania" – the 17th century trading bubble experienced in the Netherlands. Constancio stated that the ECB doesn't see the technology as a "threat to central bank policy."

https://www.coindesk.com/mario-draghi-european-central-bank-has-no-power-to-regulate-bitcoin/

[Carlton Banks]

hey Mario, welcome to 2009

[iamTom123]

I think China should better listen to Mario Draghi so they would realized the mistakes they did weeks ago when they banned ICOs (instead of regulating them) and stopping Bitcoin exchanges from continually operating (instead of requiring them to follow strict guidelines).

This statement coming from a high-ranking authority in the European elite is telling us that maybe they now realized the futility of stopping Bitcoin and should rather go for establishing regulatory framework and guidelines and not following what China did. Slowly we are now forgetting the China Effect means as we are hearing more and more positive news in many fronts.

[Wekkel]

The attack would point to exchanges, unless Dimon of course comes over to 'close Bitcoin down' 

Dimon = the new Chuck Norris

[Argoo]

While the European Bank stated that it does not have the authority to prohibit or restrict the Crypto currency. This does not mean that this can not be done in the future, when such powers may appear. However, in general, the information is positive and may affect the stabilization of the situation in the crypto-currency market.

[Carlton Banks]

While the European Bank stated that it does not have the authority to prohibit or restrict the Crypto currency. This does not mean that this can not be done in the future, when such powers may appear.

No it doesn't.

How will they achieve prohibition? How could cryptocurrency be restricted by the ECB or the European Commission?

You're making unqualified assertions, and easily to disproven ones; previous monetary systems or accounting systems operating outside of the control of the financial system (e-Gold, Liberty Reserve, Liberty Dollar) were all discovered physically and shut down (by US government agencies). No such move can be made against Bitcoin, it was designed to make that act exceedingly difficult to perform, even in a ruthlessly totalitarian environment (to wit, Venezuelans, Ukrainians and Zimbabweans using Bitcoin to survive under the watch of highly repressive state apparatus).

So what's the EU gonna do? The amount of money and resources to shut Bitcoin down don't really exist, just as the resources to prevent people recording radio broadcasts, copying friends' CDs or p2p filesharing was never enforceable. If the authoritarian states of China, USA, Venezuela, Zimbabwe and wartorn Ukraine cannot control Bitcoin, what chance does the EU have? Please reply

[BitHodler]

It is actually possible to largely regulate the crypto industry, and I am quite a supporter of such actions. It's obvious that the demand for crypto is only increasing, and that there isn't an end in sight.

Instead of going nuts on crypto like China is doing, governments should do everything they can to stimulate crypto currency usage throughout their entire country ~ it's in their best interest as well.

Crypto doesn't need to be a threat to the financial system. I am even more inclined to think that it will greatly stimulate our economies if properly incorporated. It's just a matter of doing it, and not avoiding it.

[Samarkand]

...

So what's the EU gonna do? The amount of money and resources to shut Bitcoin down don't really exist, just as the resources to prevent people recording radio broadcasts, copying friends' CDs or p2p filesharing was never enforceable. If the authoritarian states of China, USA, Venezuela, Zimbabwe and wartorn Ukraine cannot control Bitcoin, what chance does the EU have? Please reply

It would probably be enough to shut down the exchanges that allow
SEPA deposits. If Kraken and especially Bitstamp were not available to
European citizens anymore, Bitcoin adoption would decline sharply in
Europe.

Bitcoin would still exist, but it would be increasingly hard to use it.
ATMs, merchant acceptance and so on would be gone and it would
contract to use cases like money laundering or simply being a hedge
against inflation.

[Carlton Banks]

It would probably be enough

Define "it" and "enough"

Really, you're saying the same thing I am: the EU have little ability to control Bitcoin, just as all states have little capacity to affect it


All you're really saying is that your concept of what world commerce means and how it's dynamics work is pretty limited. And sure, the majority of the EU population is the same. Guess what? The majority of the EU population are not very smart, rich, or educated. Bitcoiners tend to be at least one of those three, so I'm still not seeing it how you are.

And if the majority of smart, rich and educated people only begin to use Bitcoin as an inflation hedge (aka their savings), regular currencies become increasingly less valuable, by definition. Hell, even a significant minority of those demographics could be enough to tip the balance. That's without mentioning the other use-cases you consider to be insignificant, as well as the use-cases you didn't think of.

[yayayo]

And if the majority of smart, rich and educated people only begin to use Bitcoin as an inflation hedge (aka their savings), regular currencies become increasingly less valuable, by definition. Hell, even a significant minority of those demographics could be enough to tip the balance. That's without mentioning the other use-cases you consider to be insignificant, as well as the use-cases you didn't think of.

Yes. Revolutions are led by an avant-garde. The masses neither have enough knowledge nor courage and will follow only if they expect positive effects for themselves. Quantitative easing and excessive indebtedness will ultimately lead to the destruction of fiat currencies. When people begin to feel the effects they will be actively seeking for alternatives. The early adopters of Bitcoin will serve as a role model for them.

In my opinion it's already too late to stop Bitcoin, because a significant minority of smart and rich people has already entered the Bitcoin space and won't be leaving anytime soon.

ya.ya.yo!