Saturday, September 15, 2018

The European Central Bank does not plan to issue its own cryptocurrency for the time being

The position of banks towards cryptocurrencies was perpetually quite reserved. Most of those establishments selected to reject it, not solely owing to the risks it may bring, however additionally as a result of it absolutely was a currency different that didn't want intermediaries, love banks.

However, in recent months many banking establishments have modified their minds and determined to issue their own digital currencies. however the eu financial institution says it's still too early for that.

On September twelve, the president of the eu Parliament, Mario Draghi, assured that the eu financial institution (ECB), "has no plans" to issue its own digital currency. this can be as a result of, within the parliamentarian's words, a "substantial development" of the technology behind the cryptocurrencies continues to be required before the EU's most financial organisation considers its use.

According to CoinTelegraph, Draghi same that "the ECB and therefore the Eurosystem don't presently have plans to issue a digital currency of the financial institution. However, we have a tendency to area unit fastidiously analyzing the doable consequences of issue same currency as a complement to money ".

At the instant, there's no real ought to issue an extra currency within the monetary unit zone, same the president of Parliament, because the demand for money "continues to grow" inside the eu Union.

In addition to the current, "the technologies that might be wont to issue a digital currency of the financial institution haven't nevertheless been totally tested and need substantial extra development before they will be utilized in depth within the context of the financial institution," he said. a matter asked by the MEP Jonás Fernández.

Continuing together with his response, he another that "with regard to the financial institution that administers the individual accounts for households and corporations, this might imply that the financial institution would be in competition for retail deposits with the banking sector and would cause probably substantial operational risks and costs" .

Like the twenty eight EU members, Draghi has remained cautious with cryptocurrencies issued by banks, not like alternative countries love China, Russia and Venezuela.

Although the European Union is a little more open to the idea of ​​cryptocurrencies, there area unit still several prejudices against them. Before brooding about a digital ECB currency, EU members ought to place confidence in a joint regulation for digital assets, that is a lot of pressing thanks to the exaggerated quality of cryptocurrencies within the "old continent".