Crypto has shown no signs of benefiting society or the wider economy, ECB Executive Committee member Fabio Panetta said today, according to Bloomberg.
Although Crypto advocates often hail the ability of cryptocurrencies to serve a portion of the population “without a bank” or to remove the middleman, the ECB official noted that “there is no indication that crypto assets have been or are being executed. useful functions at social and economic level “.
“They are generally not used for retail or wholesale payments, they do not finance consumption or investment and they do not play any role in combating climate change,” Panetta said in a speech in Rome.
Central banks and regulators around the world are stepping up their efforts to establish a regulatory framework for cryptocurrencies such as Bitcoin, whose growing popularity poses a potential threat to existing monetary regimes.
Several central banks, including the ECB, are reacting by considering issuing their own digital currencies in an effort to keep up with technological developments.
Panetta criticized the crypto initiatives “for the enormous extent of pollution and damage to the environment”, as well as for their role in financing criminal activities and tax evasion.
“Overall, it is difficult to see any reason to justify the existence of cryptocurrencies in the financial environment,” he said.
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Source From: Capital
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