Mario
Draghi, president of the European Central Bank (ECB) shares his views
on stablecoins, the future of crypto assets, and possible digital form
of the Euro.
Monitoring developments in crypto
On Sept. 27, in a letter
addressed to European parliament member Eva Kaili, ECB president Mario
Draghi noted that the European System of Central Banks (ESCB) is closely
monitoring developments in the cryptocurrency industry. Draghi added:
“The
ESCB is analysing crypto-assets and stablecoins with a view to
understanding their potential implications for monetary policy, the
safety and efficiency of payments and market infrastructures, and the
stability of the financial system.”
Despite
displaying a positive approach towards new technologies, Draghi
apparently thinks that stablecoins and cryptocurrency in general are of
little value. He said:
“Thus far, stablecoins and
crypto-assets have had limited implications in these areas and are not
designed in ways that make them suitable substitutes for money.”
Draghi
did add that due to the continuous technological innovation and rapid
evolution in the cryptocurrency industry, the ECB’s assessment might be
different in the future.
Digital Eurocoin looms?
Draghi
also addressed the opportunities and challenges that come with releasing
a digital form of the Euro coin. He pointed out that the technological
part of a European stablecoin is not the issue, but “rather its utility
in terms of costs and benefits to the public.”
Draghi concluded
his letter by pointing to Target Instant Payment Settlement service for
the Eurozone, which was launched in November 2018, adding:
“It
enables payment service providers to offer fund transfers to their
customers in real time and around the clock, every day of the year.”
Cointelegraph reported on Sept. 24 that French Finance Minister Bruno Le Mairesuggested
that Europe should launch its own digital currency. Le Maire said that
he would discuss the feasibility of a European public digital currency
with his counterparts.
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