[2017-10-01] European Central Bank ‘Does Not Have Authority’ to Regulate Bitcoin

[cybersofts]

European Central Bank ‘Does Not Have Authority’ to Regulate Bitcoin: ECB President

European Central Bank (ECB) president Mario Draghi stated that the agency does not have the authority to regulate bitcoin and other cryptocurrencies.
ECB Does Not Have Authority to Regulate Bitcoin

Draghi made these comments in a meeting of the European Parliament’s Committee on Economic and Monetary Affairs. Although Draghi’s formal statement did not address cryptocurrency, a committee member asked him to reveal what approach the ECB intends to take toward cryptocurrencies, in light of China’s recent ban on initial coin offerings (ICOs), as well as more conciliatory stances from Japan and Mexico, among others.

Draghi replied that the European Central Bank has not yet discussed the implications of cryptocurrency. However, he said that if it later decided to analyze the risks of digital currency, the bank would take the same approach as with all financial innovations: examine the technology’s scale, usage, and impact on the European economy.

He added that it is not within the ECB’s powers to prohibit or regulate bitcoin.

    “Certainly it’s not within our powers to prohibit or to do something of the nature…or to regulate” bitcoin,” he said, “but we didn’t have a discussion on an institutional view of” cryptocurrency.

He added that the ECB’s greatest fear with cryptocurrency and other FinTech projects is the risk of cyber attacks. This latter comment reinforces a recent statement from the European Commission announcing the creation of a pan-European Cybersecurity Agency.

Included within the agency’s directives will be a mandate to “strengthen the ability of law enforcement authorities to tackle [monetary fraud] by expanding the scope of the offences related to information systems to all payment transactions, including transactions through virtual currencies.”
Governments Clarify Positions on Cryptocurrency

Although Draghi declined to issue specific guidance on cryptocurrency usage, many governments have begun to clarify their positions on the growing digital currency ecosystem. China has adopted a strict stance toward cryptocurrency, as evidenced by its blanket ban on initial coin offerings and bitcoin exchanges. Others, however, have been more accommodating.

Earlier this year, Japan adopted cryptocurrency-friendly regulations that have led to a surge in bitcoin adoption within the country. Mexico is working on regulations intended to help the FinTech industry grow at a healthy pace. Malaysia is also reportedly planning to legalize and regulate digital currency usage, potentially introducing millions of new users into the cryptocurrency community.


Source: https://www.cryptocoinsnews.com/european-central-bank-not-authority-regulate-bitcoin-ecb-president/

[iamTom123]

Mario Draghi is speaking the real truth. However, governments can always get creative though they can not really stop nor regulate Bitcoin what they do is regulate the activities related to Bitcoin and that is where is the hot seat is. Like what happened in China recently they know that Bitcoin is actually outside of their control so what they did is to stop all Bitcoin exchanges and ICO which is in effect directly or indirectly harm Bitcoin. This is the route countries can be taking on Bitcoin...either that country wants just to regulate or worst ban Bitcoin.

As of now, in light of the things that transpired in China, we always prefer that a country put up their regulatory framework where Bitcoin and cryptocurrency in general can be working on. we believe that even if Bitcoin can be a disruptor there are many advantages that a country can get from regulating Bitcoin rather than banning it. and this would be seen on Japan which is now the leader in all things Bitcoin except for its mining which China remains to have the bigger influence with.

[GetBABB]

European Central Bank ‘Does Not Have Authority’ to Regulate Bitcoin: ECB President

European Central Bank (ECB) president Mario Draghi stated that the agency does not have the authority to regulate bitcoin and other cryptocurrencies.
ECB Does Not Have Authority to Regulate Bitcoin

Draghi made these comments in a meeting of the European Parliament’s Committee on Economic and Monetary Affairs. Although Draghi’s formal statement did not address cryptocurrency, a committee member asked him to reveal what approach the ECB intends to take toward cryptocurrencies, in light of China’s recent ban on initial coin offerings (ICOs), as well as more conciliatory stances from Japan and Mexico, among others.

Draghi replied that the European Central Bank has not yet discussed the implications of cryptocurrency. However, he said that if it later decided to analyze the risks of digital currency, the bank would take the same approach as with all financial innovations: examine the technology’s scale, usage, and impact on the European economy.

He added that it is not within the ECB’s powers to prohibit or regulate bitcoin.

Source: https://www.cryptocoinsnews.com/european-central-bank-not-authority-regulate-bitcoin-ecb-president/

Thanks for the article, I would imagine that the ECB will need to *discuss the implications of cryptocurency* in the near future, not just in terms of the risks, but also the potential benefits to EU citizens as well as instutitions.

[veleten]

European Central Bank ‘Does Not Have Authority’ to Regulate Bitcoin: ECB President-thank God for that
at least some area where the cental banks do not decide,unlike the countrie's monetary policies and the home and foreign politicies as well
there can be only two plausible explanations:either CB are not aware of the cryptocurrencie's potential and the threat they pose to the system
or they are firmly in control of the forces beyond the said cryptocurrencies
either way I don't believe they will just stand aside and watch
if you can't beat them,lead them

[moriskarlov]

Draghi replied that the European Central Bank has not yet discussed the implications of cryptocurrency.

Those bureaucratic and unwieldy institutions will argue and discuss cryptocurrencies  long years. During that time the blockchain technology will spread around the world, like spider`s web. So please dear officers, just step aside and let btc build new transparent economy.

[bitcoinnewsindo]

European Central Bank ‘Does Not Have Authority’ to Regulate Bitcoin: ECB President-thank God for that
at least some area where the cental banks do not decide,unlike the countrie's monetary policies and the home and foreign politicies as well
there can be only two plausible explanations:either CB are not aware of the cryptocurrencie's potential and the threat they pose to the system
or they are firmly in control of the forces beyond the said cryptocurrencies
either way I don't believe they will just stand aside and watch
if you can't beat them,lead them

further simplifying why European central banks do not regulate bitcoin because they do not seem to see that bitcoin as a threat
because they think very traditional, can be said they only as a spectator in the future