The European Central Bank (ECB) has evaluated the use of blockchain technology in the past, but as of late, they’ve been extremely quiet about their advancements.
In an interview posted on their website on October 29th, a Member of the Executive Board of the ECB addresses this question.
Benoît Cœuré was asked why the ECB and national central banks were ignoring Bitcoin and the other cryptocurrencies and his statement was:
“We aren’t ignoring them. At the moment cryptocurrencies don’t pose any monetary risk because the amounts involved are marginal. They are speculative financial instruments which create risks of a financial or even criminal nature.”
While banks have no power to regulate any of the cryptocurrencies nor see them as a threat currently, it would be unwise of them to not follow their development.
Central Banks Across the World
Cœuré also said:
“The central banks are following their development very closely because they can spread very rapidly, especially in countries which are moving away from banknotes and coins.”
There are some nations, including Sweden and Singapore, that are moving away from physical coins and bills and adapting cashless payments. This is one of the main reasons the banks cannot just ignore cryptocurrencies. Instead, they are sitting on the sidelines closely monitoring the situation.
Cœuré has not been the only one to comment. In September, ECB’s VP, Vitor Constancio, stated that the blockchain technology is no “threat to central banking policy.”
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