German Central Bank: Cryptos are not a threat to financial stability
The representative of the Central Bank of Germany, Burkhard Balz, said that cryptocurrencies do not pose a threat to financial stability during a talk in the European Parliament, reported a publication published on the website of the institution on July 9.
Burkhard Balz, member of the Executive Board of the Deutsche Bundesbank, stated that “crypto-tokens currently do not represent a risk to monetary or financial stability”. In addition, he also noted that “gaps can occur when they are beyond the reach of regulators,” “authority or where there is an absence of international standards.”
This idea is in line with the assertions of the representatives of the Spanish Law, who pointed out that Bitcoin ATMs show a breach in European Union regulations against money laundering (AML), as Cointelegraph previously reported. Balz also warned in his speech that any increase in the popularity of cryptographic assets warrants detailed examination. Even so, he also expressed great hopes in the digital transformation brought about by artificial intelligence, distributed general ledger technology and cloud services. He also pointed out the following:
“We are not talking about” evolution “, about how banking adapts to the wishes and needs of a digital generation, we are talking about a true” disruption “that can change the financial sector forever.”
Last week, the member of the executive board of the European Central Bank, Benoit Coeure, said that financial regulators should act quickly to prepare for Facebook’s strategy with Libra as a stablecoin.
As Cointelegraph reported last month, Australia’s central bank said Bitcoin and cryptocurrencies would be kept out of traditional payments.
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