Fabio Panetta slammed cryptocurrencies and said that in the future Crypto assets will play an important role in gambling like bad activities only.
The European Central Bank (ECB) is the prime component of the Eurosystem and the European System of Central Banks (ESCB). Over the past several years, ECB officials several times slammed cryptocurrencies & stated that cryptocurrencies are not backed by any intrinsic values.
On 23 June 2023, Fabio Panetta, an executive board member of the European Central Bank (ECB), published a written note to share his opinion on the surging popularity of cryptocurrencies in the world.
Fabio said that Crypto assets are highly volatile and also global regulators need to consider Cryptocurrencies as a gambling assets, suitable for gambling.
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According to the ECB official, all cryptocurrencies are restricted over their use cases so there is a very big limit to use as a financial asset. Further Fabio indirectly dragged attention toward the bankruptcy & downfall of the crypto firms in the recent year.
“The crypto ecosystem is riddled with market failures and negative externalities, and it is bound to experience further market disruptions unless proper regulatory safeguards are put in place,” Fabio said.
Furthermore, Fabio suggested regulators not try to support this sector, as the crypto sector failed to bring any benefit to the social world & also continuously tried to enter the traditional financial sector rapidly.
Crypto has relied on constantly creating new narratives to attract new investors, but has failed to deliver on its promises. Policymakers should be wary of supporting an industry that has so far produced no benefits for society.
Read the speech https://t.co/okum8fH3qf
1/3 pic.twitter.com/40OlefVExB
— European Central Bank (@ecb) June 23, 2023
It is worth it to note that EU lawmakers already approved Markets in Crypto Assets (MiCA), a crypto sector dedicated regulatory framework.
The European Union lawmakers are getting huge appreciation from the crypto sector for bringing such clear rules. MiCA will come into effect in some steps ( 2024 to 2025).
Every crypto exchange has been engaged with the EU member countries’s regulatory bodies to establish a crypto business under clear rules & laws.
Read also: Mercado Bitcoin is a new participant in the Brazilian CBDC pilot
ECB official says crypto’s future is only in gambling
https://bitcoinik.com/ecb-official-says-cryptos-future-is-only-in-gambling/feed/
https://bitcoinik.com/ecb-official-says-cryptos-future-is-only-in-gambling/feed/
