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“Not Within Our Power to Prohibit or Regulate Bitcoin”: Mario Draghi

Mario Draghi, President of the European Central Bank (ECB) stating that bitcoin doesn’t fall under the regulatory powers of the ECB. The statement was made in response to questions from the Committee on Economic and Monetary Affairs of the European Parliament.

Mario Draghi, President of the European Central Bank,

“It Would Not Be [Within] Our Power to Prohibit or Regulate [Bitcoin]”.

Reportedly, Mario Draghi statement following question whether or not the ECB plans to develop a regulatory apparatus pertaining to bitcoin and what risks cryptocurrencies may pose to the European economy.

According to the sources, Draghi stated that after considering,

“the magnitude, user acceptance and impact on the real economy [of bitcoin] …it would be very premature to consider it as a payment instrument for the future”. Draghi also expressed the ECBs intention to assess the cyber risks associated with bitcoin and cryptocurrencies.

Also Read: Revolutionary-Finland Bank researchers praise Bitcoin’s Economic System

Draghi’s statement on Blockchain Technology

At Trinity College in Dublin, during an Youth Dialogue event, ECB President has asked a question on whether “new blockchains technologies have a role in monetary policy in the future”.

Draghi says,

“we at the ECB are looking into this, and we have now been looking at this for some time. One conclusion is that, at this point in time, the technology is not mature [enough] yet… to be considered in either central bank policy-making, or in the payments system. We have to look at what progress this technology will [make] in the future”.

Moreover, the ECB president emphasized the European Central Bank’s desire to assess the cyber risks associated with new technologies.

Recently, Mario Draghi rejected Estonia’s plans to launch a state backed national cryptocurrency. He said that under EU law no member of state can introduce its own cryptocurrency. Earlier this week, ECB vice-president, Victor Constancio, compared bitcoin to the “tulipmania” sweeps across the Netherlands during 17th century.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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