European Central Bank Policy Maker Calls Crypto a Fairy-Tale Story

European Central Bank Policy Maker Calls Crypto a Fairy-Tale Story

A member of the Governing Council of the European Central Bank (ECB) has cautioned that “the bubble has already started to collapse,” Bloomberg reported Jan. 7.

Speaking at a conference in Riga, Latvia, Ardo Hansson — also the governor of Estonia’s central bank — stated that digital currencies will end up as a “complete load of nonsense.” The official warned that “the bubble has already started to collapse and maybe we should just see how far this collapse goes, and what is left when we’ve reached a new kind of equilibrium.” Hansson added:
“I think we will come back a few years from now and say how we could ever have gotten into this situation where we believed this kind of a fairy-tale story.”

Hansson further allegedly stated the requirement to emphasis on the subject of investor protection in cryptocurrency, noting that digital currencies might be used for unlawful activities. The central bank director also highlighted anxieties around monetary constancy, given the upsurge in links between the traditional and digital asssts regulated monetary sector.

As per the report published in Cointelegraph the ECB policy maker supported censure from the President of the European Central Bank, Mario Draghi, of the founding of an Estonian national cryptocurrency, Estcoin. Draghi stated at the time that “no member state can introduce its own currency; the currency of the eurozone is the euro.”

In distinction to Coeure’s statement, European Commission vice chairman Valdis Dombrovskis statedin Sept that the eu Union can target the event of crypto plus classification and regulative mapping. Dombrovskis aforesaid at the time that crypto assets square measure “here to remain,” and also the crypto market still “continues to grow” despite “recent turbulence.”

In Nov, all the admintration member of the ECB Benoit Coeure conjointly criticized Bitcoin (BTC), stating that “few keep in mind that Satoshi [Nakamoto] embedded the genesis block with a Times headline from Gregorian calendar month 2009 regarding U.K. banks’ bailout. In additional ways in which than one, Bitcoin is that the evil spawn of the monetary crisis.”
Draghi had stated in September, “no member state can introduce its own currency; the currency of the eurozone is the euro.” Estcoins will now only be given as an impetus to e-residents, according to Siim Sikkut, an official in charge of the country’s IT strategy. Sikkut said in an interview with Bloomberg:

“We agreed in discussions with politicians that Estcoin will proceed as a means for transactions inside the e-resident community. Other options aren’t on the table. We’re not building a new currency.”

Other countries in Europe have also begun to consider issuing a digital currency through their central bank. Similar to Norway, Sweden’s Riksbank is considering an e-krona as a result of declining cash circulation.

Cointelegraph even reported that the Swiss Federal Council has demanded a data on a state-backed digital currency investigating the dangers and opportunities of its outline. At present, the lesser house of the Swiss parliament has to choose whether to provide the Federal Council’s request for research. Should the proposal be accepted, the Swiss Finance Ministry will conduct the study.

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