Bitcoin

Bitcoins Not Really Currencies, Euro Is Always Euro — Says European Central Bank President

The European Central Bank (ECB) recently published a paper titled “Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures,” in which the European Central Bank President states that Bitcoin is not a currency and is, therefore, no threat to monetary policy or the real economy.

Bitcoin Is No Threat to the Euro, Says ECB President

Per the report, the ECB states that cryptocurrencies and Bitcoin are not currencies, because their level of acceptance from merchants is very limited and they are far too volatile to be used as a currency. The ECB views Bitcoin and crypto as investable assets that pose no threat to fiat currency.

As stated by ECB president Mario Draghi earlier in May, he said:

“Cryptocurrencies or bitcoins, or anything like that, are not really currencies — they are assets. A euro is a euro — today, tomorrow, in a month — it’s always a euro. And the ECB is behind the euro. Who is behind the cryptocurrencies? So they are very, very risky assets.”

However, as previously reported by IIB, the ECB is closely monitoring the development of stablecoins, which are pegged to physical assets such as fiat currencies. According to the ECB, stablecoins could offer a less volatile digital currency if collateralized by central bank reserves.

Do you think the ECB is right to think that Bitcoin is not a threat to fiat currencies like the Euro? Let us know what you think in the comment section below.

Jeremy Wall

Jeremy is a financial writer and aspiring investor. He is also a cryptocurrency enthusiast that’s fascinated with blockchain technology and the financial markets. When he’s not researching and learning about cryptocurrency, he’s traveling the world with his dog and girlfriend.

Share
Published by
Jeremy Wall

Recent Posts

Is A Silicon City Tech Giant Behind BlockDAG Network As Its $11.4M Presale Outcasts Floki Inu Price Surge Amid BOME Fluctuation

With Floki Inu's next bull run approaching, investors are closely monitoring its innovative token burn…

3 weeks ago

BlockDAG Becomes Top Crypto Investment Choice with $9.9M Presale, Beating Fantom & Apecoin

BlockDAG (BDAG) has continued to stand out with its innovative presale strategy, offering early investors…

4 weeks ago

Render and Dogecoin Price Predictions Defy Expectations As BlockDAG Emerges as the Highest ROI Crypto for 2024

As we venture into 2024, the crypto market is brimming with potential for unprecedented growth.…

4 weeks ago

Solana’s 20% Trading Spike Sparks BlockDAG Presale Interest While Memeinator Presale Reaches Edge

This analysis contrasts the flourishing momentum of BlockDAG coin's presale against the backdrop of the…

1 month ago

CryptoGames Review: Bitcoin and Altcoin Casino

Ever wondered what it is like to experience the extravagant casino vibes in the comfort…

2 years ago