ECB executive board member called cryptocurrencies a threat to the global economy

Fabio Panetta has called for stricter regulation of the digital assets market

26.04.2022 - 12:55

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1 min

What’s new? European Central Bank (ECB) Executive Board member Fabio Panetta stated that crypto assets threaten global financial stability by “creating a new Wild West.” He called on all regulatory authorities to act in a coordinated manner to ensure control over cryptocurrency activities.

The ECB’s press release

What did Panetta add? According to the ECB member, many people do not understand “what they are buying,” so he called for stricter regulation of the crypto market. This initiative should be aimed at reducing risks for the financial sector. In his view, crypto assets should only be used “within clear, regulated boundaries” and for purposes that benefit society.

“Satoshi Nakamoto’s dream of creating trustworthy money remains just that – a dream,” Panetta said.

What had happened before? The European Union’s securities, banking and insurance regulators warned investors of the dangers of cryptocurrencies. The regulators believe that digital assets carry high risks of losing funds.

In March, the Committee on Economic and Monetary Affairs of the European Parliament (ECON) adopted a bill on Markets in Crypto-Assets (MiCA). Of the 45 members of the committee, 5 voted against it and 7 abstained.

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