European Central Bank is not Ignoring Cryptocurrency

The Spread of Cryptocurrency

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One of the European Central Bank has stated that the institutions are closely watching cryptocurrency. Talking in an interview published on October 29th Benoit one of the central banks executive board member stated that they are watching cryptocurrency spread and development.

The European Central Bank is not ignoring the spread of cryptocurrencies, he said. He, however, does not believe cryptocurrency is a threat to the bank or the euro at present. In his statement, “Currently digital currency does not pose any monetary risk since the amounts involved are marginal. The transactions in cryptocurrency are speculative which creates a risk of financial and criminal activities.

Benoit continued to say that some nations are forming their own cryptocurrencies and moving away from physical bills and coins. This trend means that most of the central banks are aware of the cryptocurrency and are monitoring it.

In September this year, the European Central Bank president Mario Draghi clarified that nations in the Eurozone had to stick to the Euro use. He stated that the nations could not use their own cryptocurrencies.
This comes at a time when the digital currency is taking shape with some organizations even allowing the sale of properties using the digital coins.

The European Central Bank has in the past discussed the possibility of putting legal restrictions on Cryptocurrency. According to Ewald Nowotny, a member of ECB governing council Cryptocurrency is not a real currency. He stated that it relied on speculation and that the reason it has to be controlled. He went ahead to state that they were however not ignoring it and were closely watching it.

Even with the spread of Cryptocurrency and particularly Bitcoins the German Central Bank a member of ECB believes it’s likely to gain widespread use in individual and retail payments. Some member countries wanted to introduce their own currency like Estonia, but the ECB stopped the move.

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