Bitcoin lacks in supervision says ECB council member
Over the past few years, ECB has mentioned many things about Bitcoin. Recently, Ewald Nowotny, the Austrian economist and ECB council members gave his opinions. He says, presently bank looks into regulating decentralized currencies but did not confirm with kind of mandates the institutions would enforce. Since the European official believes Bitcoin lacks in supervision and is too volatile.
Nowotny speaks with the Austrian weekly reports explains,
“Bitcoin is not a currency, it is highly speculative and volatile, it is not subject to any supervision either. The stock market movements of the recent period make it clear”.
Stability makes a Currency good: Nowotny
The council member of ECB, Ewald Nowotny has scrutinized Bitcoin and many times outspoken against crypto assets. This past July, Nowotny explains, “Bitcoin does not own the main feature that makes a currency good, namely – stability. The cryptocurrency is subject to speculations”.
Moreover, while Nowotny comments the bank wouldn’t ban Bitcoin wherein retailers must be “aware of the risks”.
Discussing Bitcoin Legal Constraints within the ECB
Besides, Mario Draghi, the ECB president told European Parliament committee that “it would not be [within] our power to prohibit or regulate [bitcoin]”. However, the Draghi, rejects the Estonian government’s plan to create its own cryptocurrency.
The president told the country,
“No member state can introduce its own currency — the currency of the eurozone is the euro”.
The Nowotny explains with regards Draghi’s recent statement during his interview that the bank is ensuring placing regulatory makes compulsory towards Bitcoin.
The Austrian then emphasizes,
“There is a particular problem in China, because Bitcoins are used as a means to curse capital and to circumvent legal regulations. We are discussing the legal constraints within the ECB”.
Moreover, the ECB actively researching legal constraints follows in line with the European Parliament’s strategy to hold up cryptocurrency regulation this year.