Luis De Guindos (ECB Vice President) has stated that he would like cryptocurrencies to be subjected to the same rules and regulations as other assets. These statements were made at a presentation that De Guindos gave as part of the European Parliament’s Summer School.
Vice President of ECB: Crypto assets should be treated the same as other assets
Luis De Guindos (current Vice-President, ECB) declaredHe believes that crypto-assets should have the same regulatory regime as any other asset on the market. De Guindos voiced his opinion at a series o summer schools sponsored by both the European Parliament, and the European Union. He spoke specifically about cryptocurrencies:
I wouldn’t ban them but they should be subjected to the same conditions that other financial assets and be exempted from money laundering and terrorist financing.
De Guindos believes cryptocurrencies could be easily used to illegal ends due to their pseudonymous attributes. De Guindos has always been skeptical about cryptocurrencies. He calls them “crypto-assets” as they don’t work as valid payment methods. He also stated that crypto assets do not have any impact on the region’s financial stability.
De Guindos noted that these tools lack an economically sound basis in comparison to traditional assets. According to De Guindos, cryptocurrencies are only valuable when there is scarcity and not in relation to other assets.
This is not De Guindos’ first advice on crypto. De Guindos declared that cryptocurrencies are not investments because of their fragile value proposition. However, the ECB has begun to investigate the possibility of creating a digital currency. This would allow the ECB to combat the rise in private alternative payment methods, such as cryptocurrencies or those offered by fintech firms.
The public still expects that the ECB will soon decide to issue a digital euro. De Guindos believes that a digital currency is absolutely necessary. He stated that the digital euro is:
This is something we must do. This has serious implications for financial stability as well as monetary policy. We will need to calibrate the project to minimize any negative consequences.
What do you think about De Guindos’ position regarding cryptocurrency? Comment below.
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