Cryptocurrencies have « failed to deliver on their promises « . These are the words of Fabio Panettamember of the European Central Banka European financial institution which is preparing to launch a central bank digital currency (MNBC) within the next few months.
Cryptocurrencies, « usual suspects » for Fabio Penetta
In detail and in this remarksFabio Penetta invites you to regulatebut not to legitimize cryptocurrencies. This would mean not encouraging their development. The stablecoins are no exception – on the contrary, they are, too, a sign of danger for the regulator.
In parallel, like the adage, the friends of my enemies are my enemies, Panetta expressed the importance in his view of continuing to keep up the pressure on banks working with crypto players, again highlighting the money laundering risks. In his speech, Bitcoin and cryptocurrencies appear even as a gamea bet made by investors:
« But the bursting of the bubble doesn’t necessarily mean the end of crypto-assets. People like to gamble, and investing in crypto offers them a way to do so. (…) Crypto valuations are highly volatile, reflecting the absence of any intrinsic value. This makes them particularly sensitive to changes in risk appetite and market rhetoric. Recent developments affecting major crypto-asset exchanges have highlighted the contradictions of a system which, although created to counter the centralization of the financial system, has itself become highly centralized. »
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« We must resist the temptation to offer public support to cryptos »
So, in the face of growing competition from Bitcoin (BTC) and other cryptocurrenciescentral bankers, including the ECB, are in a hurry to release their own MNBC. And Penetta following the direction of the wind, for its part expressed the need to counter cryptocurrencies » deleterious « by developing an MNBC to offset the rise of cryptocurrencies. A further clarification of the ECB’s intentions.
Thus, in a European Manichaeism and its Central Bank, Panetta contrasts the virtuous MNBCs with the risky, volatile and speculative cryptocurrencies. POW, POS, illicit activities and the black market, code errors and blockchain loopholes, it’s all there. So, in the face of growing institutional interaction with crypto-currencies, Panetta defends a centralized, secure MNBC that will foster the development of a European ecosystem.
« A central bank digital currency would offer a risk-free digital standard and facilitate convertibility between different forms of private digital currency. It would maintain currency uniqueness and protect monetary sovereignty. We are progressing with our digital euro project and aim to complete our survey phase later this year. »
While MiCA is being builtThis politician’s speech is quite unusual, but basically in line with the policy pursued by Christine Lagarde, President of the European Central Bank. The latter was even more cautious than expected about the launch of the digital euro, for whom » nothing has been decided yet « .
The speeches of regulators follow one another and are therefore not alike. On the one hand, we have a timid Europe that continues to confuse cryptocurrency with terrorism, and on the other, particularly in Asia, many countries are are trying to create an attractive framework for cryptocurrencies.
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