Luis De Guindos, current Vice President of the European Central Bank, is of the opinion that crypto assets should be regulated, just like any other asset in the market. The vice president made his remarks on cryptocurrencies in a presentation during a series of summer courses sponsored by the European Parliament and the European Union. De Guindos said:
“I would not prohibit them, but issuers must be required to follow the same conditions as those of other financial assets and avoid everything that has to do with money laundering or terrorist financing.”
De Guindos has always been skeptical when it comes to cryptocurrencies, which he calls “crypto-assets” because according to his view, they don’t work as valid payment methods. He believes that cryptocurrencies can easily be used for unlawful purposes because of its apparent anonymity.
De Guindos continued and said that crypto assets do not pose a risk on the financial stability of the European region. He believes that in comparison to the more traditional assets, crypto assets do not have an economic basis and their value only comes from scarcity,
The ECB official also spoke about the issuance of a ‘digital euro’ and believes there is a need for the currency and said:
“Something we just have to do. It’s not trivial in terms of the potential implications for financial stability and for monetary policy, so we will have to calibrate this project to minimize any potential negative consequences it could have.”
He further said, somewhat contradictory to crypto not posing a risk to financial stability, that a ‘digital euro’ is an instrument for the ECB to fight the rise of private alternative payment methods such as cryptocurrencies.
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Source: Igaming
