Fun

Top ECB Official Ramps Up Anti-Crypto Rhetoric, Calls for Global Regulations

News Feed - 2022-04-28 03:04:06

Top ECB Official Ramps Up Anti-Crypto Rhetoric, Calls for Global Regulations


Comparing the rise of crypto assets to the gold rush, a top executive at the European Central Bank has urged governments to take action to prevent “a lawless frenzy of risk-taking.” Speaking in the U.S., the ECB official called for a global regulatory clampdown on cryptocurrencies and stepping up efforts to issue central bank digital currencies. ECB’s Fabio Panetta Lashes Out at Crypto Assets, Says They Fail to Fulfill Promise


A century and half after Americans pushed westward to seek fortune, a growing distrust of banks and technological innovation have led to a new, digital gold rush beyond state control, Fabio Panetta, member of the Executive Board of the European Central Bank (ECB), said in a recent address at Columbia University in New York.


In his speech, which the eurozone’s monetary authority published this week under the title “For a few cryptos more: the Wild West of crypto finance,” the high-ranking ECB official remarked that the cryptocurrency market is now larger than the $1.3 trillion sub-prime mortgage market in 2008, which triggered the last global financial crisis. He likened its dynamics to a Ponzi scheme and stated: Crypto evangelists promise heaven on earth, using an illusory narrative of ever-rising crypto asset prices to maintain inflows and thus the momentum fueling the crypto bubble. But appearances are deceptive. Satoshi Nakamoto’s dream of creating trustworthy money remains just that – a dream.


Panetta went on to allege that cryptocurrency transfers can take hours to process and highlighted the wild fluctuation in the prices of digital coins like bitcoin and ether. He also pointed out that the “supposedly anonymous transactions leave an immutable trail that can be traced.”


The majority of crypto holders, the banker also noted, rely on intermediaries which is contrary to the philosophy of decentralized finance, as he put it. “Crypto assets are bringing about instability and insecurity – the exact opposite of what they promised. They are creating a new Wild West,” Fabio Panetta added. ECB Executive Suggests Global Efforts to Regulate Crypto Assets


Fabio Panetta is convinced that as speculative assets, cryptocurrencies can cause “major damage to society” when “this house of cards collapses, leaving people buried under their losses.” He warned authorities around the world they should not repeat previous mistakes by waiting for the bubble to burst, before they realize “how pervasive crypto risk has become in the financial system.”


“We need to make coordinated efforts at the global level to bring crypto assets into the regulatory purview,” the ECB official insisted. He also suggested that regulators should ensure that cryptocurrencies are subject to standards that are similar to those implemented regarding the traditional financial system. He elaborated: In doing so, we will have to deal with complex trade-offs, balancing the goals of promoting innovation, preserving financial stability and ensuring consumer protection. We should make faster progress if we want to ensure that crypto assets do not trigger a lawless frenzy of risk-taking.


The executive stressed, however, this wouldn’t be enough as market growth in the crypto space has revealed an increasing demand for digital assets and instant payments. Public authorities should satisfy it with central banks engaging in digital innovation by upgrading wholesale financial infrastructures and working to issue central bank digital currencies (CBDCs).


Panetta maintained that the European Central Bank is leading in these areas. “We are focusing on a digital euro, in order to allow citizens to use sovereign money to make payments anywhere in the euro area, while protecting its role as an anchor for the payment and monetary system,” said the ECB board member who oversees the advance of the digital currency project. Tags in this story CBDC, CBDCs, Central Bank, Central Banks, Crypto, crypto assets, crypto market, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currencies, Digital Currency, digital euro, ECB, EU, Eurozone, Fabio Panetta, Regulation, Regulations


Do you expect regulators around the world to adopt a global approach to regulating crypto assets and markets? Tell us in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Report: Cambodia Reaffirms Stance Against Unsanctioned Crypto-Related Activities REGULATION | 4 hours ago Nepal Shuts Down Crypto Websites, Apps — Warns About Engaging in Crypto Activities REGULATION | 6 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleReport: Cambodia Reaffirms Stance Against Unsanctioned Crypto-Related Activities Next articleReport: $1.3 Billion in Crypto Stolen in Q1 2022, 97% Stemmed From Defi Exploits Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Biggest Movers: LINK Jumps to 6-Month High, LTC Back Above $100
Biggest Movers: LINK Jumps to 6-Month High, LTC Back Above $100 Chainlink rose to a six-month high in today’s session, as crypto markets moved back into the green on Tuesday
President Joe Biden is trying hard to ‘kill crypto,’ says Cardano founder
Martin Young3 hours agoPresident Joe Biden is trying hard to ‘kill crypto,’ says Cardano founder“A vote for Biden is a vote against the American cryptocurrency industry,” said Charles Hoskinson in a video that la
Bitcoin Nears $76,000 Target Amid Price Correction — But Will This Support Hold?
Este artículo también está disponible en español. Over the past week, Bitcoin has experienced a strong market correction with prices falling as low as $80,000. Based on a
Reddit Post Reporting Tesla’s Bitcoin Purchase From a Month Ago Was a Hoax
Reddit Post Reporting Tesla"s Bitcoin Purchase From a Month Ago Was a Hoax A Reddit post that predicted Tesla’s $1.5 billion purchase of bitcoin on Monday
Brayden Lindrea44 minutes agoBitcoin miner Riot Platforms trims Q2 loss to $27.7MThe firm managed to narrow net loss in the quarter as it ramped up Bitcoin production.212 Total views2 Total sharesListen to article 0:00Ne
SUI Bearish Shift? Weekly RSI Drops Below 50%, Raising Alarm
Este artículo también está disponible en español. SUI, one of the most closely watched cryptocurrencies, is flashing warning signs as its weekly Relative Strength Index (
Martin Young18 hours agoNifty News: Coca-Cola gets Based, Reddit avatars reach 20M milestone and moreCoca-Cola has chosen the newly-launched Coinbase layer-2 network Base to deploy its Masterpiece NFT collection.3539 Tot
Bitcoin ‘whale games’ come early as BTC price swoons below $60K
William Suberg5 hours agoBitcoin ‘whale games’ come early as BTC price swoons below $60KBTC price weakness delivers seven-week lows as whale “spoofing” across order books creates grim conditions for Bitcoin bulls
Ethereum Historical Indicator Flashes Long-Term Buy Signal – Is History Repeating?
Este artículo también está disponible en español. Ethereum has been struggling below the $2,800 mark for days, unable to reclaim it as support to kickstart a recovery ral
Tesla’s SEC Filing Shows Bitcoin Fair Market Value of $191 Million
Tesla"s SEC Filing Shows Bitcoin Fair Market Value of $191 Million Tesla’s latest filing with the U.S. Securities and Exchange Commission (SEC) shows that the fair market va
Portuguese Football Legend Cristiano Ronaldo in NFT Partnership With Binance
Portuguese Football Legend Cristiano Ronaldo in NFT Partnership With Binance Cristiano Ronaldo, one of the world’s top-earning athletes, has entered into a partnership with
Cryptocurrency Is Agorism in Action
Cryptocurrency Is Agorism in Action The book “New Libertarian Manifesto” (NLM) by libertarian-anarchist Samuel E. Konkin III (SEK3) launched a movement that has grown