ECB: bitcoin threatens Europe’s financial stability

Saturday, December 30, 2017
By Paul Martin

BITCOIN’S soaring value poses a threat to the financial stability of Europe, a European Central Bank boss has warned.

By MARIA ORTEGA
Express.co.ukSat, Dec 30, 2017

Yves Mersch, a member of the executive committee of the European Central Bank (ECB) said bitcoin and similar unregulated cryptocurrencies pose a real risk to the established financial order.

In an interview with the German newspaper Boersen Zeitung, Mersch warned the entirely speculative nature of bitcoin’s value was a ‘cause for concern.’

Mersch also warned against banks investing in cryptocurrency.

He said: “When financial market infrastructures such as stock exchanges enter this business, there is a risk to the financial stability.”

But he indicated that some process of ‘normalisation’ to embrace bitcoin should be undertaken – and sooner rather than later – but that it should be ‘careful and gradual’.

In addition, Mersch was concerned by the fact that negative interest rates can have negative effects and erode the savings culture.

“Can you imagine that a whole generation grows without knowing what it means to earn interest for your money?” said the Luxembourg banker.

He suggested banks should speed up the introduction of instant payments to counter the allure of digital currencies such as bitcoin.

One of the attractions of cryptocurrencies like bitcoin and Litecoin is that they circumvent bank bureaucracy and delay.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter