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European Central Bank Cryptocurrency Definition

“ECB” means European Central Bank. It performs a similar function as the US Federal Reserve Bank which is to try to ensure a stable monetary system. This “stabilization” can be done with the intent to control inflation, increase economic development, and/or raise employment rates. Feb 13,  · The European Central Bank has decided that it is not their responsibility to regulate bitcoin; or any other form of cryptocurrency for that matter. The President of the ECB has been adamant that the bank has no role in regulating bitcoin for quite some time now. Who does need to regulate bitcoin then, or should anyone? Mario Draghi will tell what the ECB thinks about Bitcoin and its technology in the frame of the third Youth Olusegun Ogundeji. Jul 21,  · The president of the European Union's central bank has issued new remarks that touch on the rising price of cryptocurrencies. Cryptocurrency Price Boom Having Limited Effect on Author: Pete Rizzo. European Central Bank: Cryptocurrencies Must Be Regulated Within EU. Next Article: Circle Acquires Poloniex Cryptocurrency Exchange. speaking after hosting a roundtable discussion in Brussels attended by the European Central Bank, industry agencies, and the Financial Stability Board — which writes and coordinates regulation for G

We dug deep into the document to show you what this really means for cryptocurrencies.

Will the ECB ban bitcoin?

Financial regulators across the globe have been struggling with how to police an industry, and assets, that are difficult to track. Countries such as China , Taiwan , and Russia have all banned cryptocurrency transactions and have gone out of their way to control the industry.

Other countries, such as the United States , Canada , and Australia have taken on a much more balanced approach to the new asset class, which has caused the industry there to flourish. The European Union has been much more neutral when it comes to cryptocurrencies, and, unlike the US , has passed no specific legislation regarding the new asset class. These reports were published in and The report said.

Their combined value is small relative to the financial system, and their linkages with the financial sector are still limited.

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  • And while this was celebrated across the crypto industry as a win for everybody, the fine print revealed that mainstream adoption is still a long way ahead. When examining the crypto market, and Bitcoin, in particular, the report raised concerns with regard to money laundering, market integrity, and consumer protection. However, the European Central Bank found that Bitcoin and other coins posed no threat to the financial stability within the union.

    This claim seems to be the one that might get disputed the fastest, as growing institutional interest is slowly pushing cryptocurrencies into the mainstream.

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    ECB distinguished between blockchain and cryptocurrencies within the first few paragraphs of the report. There is no need to read between the lines, either—the report acknowledged that DLT and other innovative technologies have the potential to increase the efficiency of financial intermediation and the financial system as a whole. The report clearly stated that digital coins could not be characterized as a new asset class.

    The crypto industry cannot be regulated until central banks and other financial authorities recognize digital currencies as financial instruments and acknowledge their value in the market. The above advertisement is an affiliate link. CryptoSlate will earn a small commission if you sign up.

    ECB President: Cryptocurrency Price Boom Having Limited Effect on Economy

    Subscribe to CryptoSlate , our daily newsletter containing the top stories and analysis. Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune companies along with smaller firms.

    When he is not solving transportation problems at his company Ola , he can be found writing about the blockchain or roller skating with his friends. Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article.

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    Central banks and crypto

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    European Central Bank: Bitcoin isn’t a threat, cryptocurrency not a new asset class

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