Europe is a rather controversial region when it comes to Bitcoin and cryptocurrencies. Up until this point, there is no hint of any regulatory measures whatsoever. That isnât necessarily a bad thing, but ignorance shouldnât be rewarded either. ECB president Mario Draghi feels Bitcoin isnât mature enough to warrant regulation. An interesting choice of words, as it leaves Bitcoin in a semi-legal state for the time being.
A lot of people are surprised by the fact Europe has no cryptocurrency regulation. A few individual countries tax Bitcoin transactions and payments, though. However, in the bigger scheme of things, nothing is happening. That will not change anytime soon either, according to Mario Draghi. The ECB isnât even remotely concerned about Bitcoin or altcoins right now. Hence, there is no point in introducing regulation or even working on such guidelines at this stage.
Draghiâs stance on cryptocurrencies hasnât changed much over the years. During yesterdayâs speech, he called Bitcoin immature. Not entirely surprising, considering the ECB isnât concerned about any threat to the Euro right now. Fintech innovation needs to be cherished, but the risks shouldnât be overlooked. For now, those risks donât outweigh potential benefits, according to Draghi. A somewhat surprising revelation, albeit a semi-positive one in the end.
Mario Draghi clarifies his position as follows:
âWith anything thatâs new, people have great expectations and also great uncertainty. Right now, we think that â especially as far as bitcoins and cryptocurrencies are concerned â we donât think the technology is mature for our consideration.â
One has to keep in mind Draghi made another interesting comment not too long ago In his opinion, the ECB doesnât have the power to regulate Bitcoin under any capacity. Moreover, IMFâs Christine Lagarde stated how cryptocurrencies shouldnât be ignored. It is possible to pay attention to something without regulation. In Europe, Bitcoin is a very small niche market. That situation has remained rather stagnant for quite some time now. An interesting future lies ahead, though, that much no one can deny.
Header image courtesy of Shutterstock
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