European Central Bank (ECB) and cryptocurrencies.
The President of the European Central Bank (ECB), Mario Draghi, said that European banks could hold certain positions held by cryptocurrencies.
Mario has repeatedly spoken about Bitcoin and other cryptocurrencies, which confirms the fact that banks are interested in virtual currencies. Due to recent developments such as the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE), Bitcoin futures contracts, banks can start working with cryptocurrency.
"Recent developments, such as the listing of Bitcoin futures contracts on US stock exchanges, could also lead European banks to hold positions in cryptocurrency, so we will look at it," said Mr Draghi during a statement in the European Parliament.
Risky investments
Mr Draghi, however, explained that European financial institutions do not increase the taste for digital currencies such as Bitcoin. He further explained that Bitcoin and other cryptcurrency are unregulated and that they are a very risky investment. Bitcoin and the market are very volatile and prices are subject to constant change. In addition, cryptocurrencies are not related to any specific surveillance.
The Head of EU Central Banking also mentioned the upcoming uniform surveillance through a "single surveillance mechanism". It oversees the risks of digital assets to supervised institutions or banks.
"Let me first say that we do not respect the systemically relevant possession of digital currencies by supervised institutions - banks, in other words. European Union credit institutions have a limited taste for digital currencies such as Bitcoin." Said the ECB's director.
Change in ECB rate
Draghi has previously said that the ECB has no power to regulate cryptos. His comments this week, therefore, do not suggest regulation, but greater supervision and access to cryptocurrencies between EU banks or states. Later, he added that cryptographers were not yet mature enough for the ECB to consider their regulation.
If banks start to hold and invest in cryptocurrencies, the market can get a significant influx of money. Bitcoin is a naturally deflagration cryptocurrency. If banks decide to invest larger volumes of money into this virtual currency, then their price may also show a remarkable increase.
If the banks supported the crypto market, it would be very good for the whole crypto community because the market cap would start to grow nicely.
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