Gathered information suggest that European Central Bank (ECB) is considering a regulation for all cryptocurrencies. According to report by Ewald Nowotny who is council member: “We are questioning ourselves if legislators or Central banks should intervene. We are looking at cases like China where they have banned the use of cryptocurrencies since they consider them fraudulent.”
About bans and Schemes
Not only did China ban the use of cryptocurrencies but they also shut down all digital currency exchanges and the launch of ICOs. Enforcing or banning cryptocurrencies is not easy and people wonder about the wisdom of basing Europe’s regulatory scheme on actions which was taken by world’s largest communist country.
Nowotny realizes that Cryptocurrency market is not large in a way that it can destabilize the traditional financial system. He actually does not see the urgency to control them when they do not pose any risk of systematic collapse. During his statement, he added that: “Investing in Cryptocurrencies is like buying shares on a bourse. The investors can sometimes suffer losses, and when it happens, they have to accept it.”
Based on Nowortny’s statement it’s possible that the European Central Bank could adopt the ‘buyer be aware’ attitude. This is especially when it comes to digital currencies other than imposing regulations or bans. Many governments are trying hard to understand blockchain technology and cryptocurrencies which they had earlier ignored.
This has led to some countries like China taking hash decisions of banning digital currencies. There other countries like Japan which have decided to make Bitcoin legal money. This makes regulations, bans or adoption of the currencies a hard decision to make. This is particularly since most of the countries do not even understand how the currencies operate. This is what has made many governments remain quiet about the currencies.