{"id":3726,"date":"2022-04-28T10:13:03","date_gmt":"2022-04-28T10:13:03","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=3726"},"modified":"2022-04-28T10:13:04","modified_gmt":"2022-04-28T10:13:04","slug":"top-ecb-official-ramps-up-anti-crypto-rhetoric-calls-for-global-regulations","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=3726","title":{"rendered":"Top ECB Official Ramps Up Anti-Crypto Rhetoric, Calls for Global Regulations"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>Comparing the rise of crypto assets to the gold rush, a top executive at the European Central Bank has urged governments to take action to prevent \u201ca lawless frenzy of risk-taking.\u201d Speaking in the U.S., the ECB official called for a global regulatory clampdown on cryptocurrencies and stepping up efforts to issue central bank digital currencies. <\/strong><\/p>\n<h2>ECB\u2019s Fabio Panetta Lashes Out at Crypto Assets, Says They Fail to Fulfill Promise<\/h2>\n<p>A century and half after Americans pushed westward to seek fortune, a growing distrust of banks and technological innovation have led to a new, digital gold rush beyond state control, Fabio Panetta, member of the Executive Board of the European Central Bank (ECB), said in a recent address at Columbia University in New York.<\/p>\n<p>In his speech, which the eurozone\u2019s monetary authority published this week under the title \u201cFor a few cryptos more: the Wild West of crypto finance,\u201d the high-ranking ECB official remarked that the cryptocurrency market is now larger than the $1.3 trillion sub-prime mortgage market in 2008, which triggered the last global financial crisis. He likened its dynamics to a Ponzi scheme and stated:<\/p>\n<p>Crypto evangelists promise heaven on earth, using an illusory narrative of ever-rising crypto asset prices to maintain inflows and thus the momentum fueling the crypto bubble. But appearances are deceptive. Satoshi Nakamoto\u2019s dream of creating trustworthy money remains just that \u2013 a dream.<\/p>\n<p>Panetta went on to allege that cryptocurrency transfers can take hours to process and highlighted the wild fluctuation in the prices of digital coins like bitcoin and ether. He also pointed out that the \u201csupposedly anonymous transactions leave an immutable trail that can be traced.\u201d<\/p>\n<p>The majority of crypto holders, the banker also noted, rely on intermediaries which is contrary to the philosophy of decentralized finance, as he put it. \u201cCrypto assets are bringing about instability and insecurity \u2013 the exact opposite of what they promised. They are creating a new Wild West,\u201d Fabio Panetta added.<\/p>\n<h2>ECB Executive Suggests Global Efforts to Regulate Crypto Assets<\/h2>\n<p>Fabio Panetta is convinced that as speculative assets, cryptocurrencies can cause \u201cmajor damage to society\u201d when \u201cthis house of cards collapses, leaving people buried under their losses.\u201d He warned authorities around the world they should not repeat previous mistakes by waiting for the bubble to burst, before they realize \u201chow pervasive crypto risk has become in the financial system.\u201d<\/p>\n<p>\u201cWe need to make coordinated efforts at the global level to bring crypto assets into the regulatory purview,\u201d the ECB official insisted. He also suggested that regulators should ensure that cryptocurrencies are subject to standards that are similar to those implemented regarding the traditional financial system. He elaborated:<\/p>\n<p>In doing so, we will have to deal with complex trade-offs, balancing the goals of promoting innovation, preserving financial stability and ensuring consumer protection. We should make faster progress if we want to ensure that crypto assets do not trigger a lawless frenzy of risk-taking.<\/p>\n<p>The executive stressed, however, this wouldn\u2019t be enough as market growth in the crypto space has revealed an increasing demand for digital assets and instant payments. Public authorities should satisfy it with central banks engaging in digital innovation by upgrading wholesale financial infrastructures and working to issue central bank digital currencies (CBDCs).<\/p>\n<p>Panetta maintained that the European Central Bank is leading in these areas. \u201cWe are focusing on a digital euro, in order to allow citizens to use sovereign money to make payments anywhere in the euro area, while protecting its role as an anchor for the payment and monetary system,\u201d said the ECB board member who oversees the advance of the digital currency project.<\/p>\n<p>Tags in this story<\/p>\n<p>CBDC, CBDCs, Central Bank, Central Banks, Crypto, crypto assets, crypto market, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currencies, Digital Currency, digital euro, ECB, EU, Eurozone, Fabio Panetta, Regulation, Regulations<\/p>\n<p><em><strong>Do you expect regulators around the world to adopt a global approach to regulating crypto assets and markets? Tell us in the comments section below. <\/strong><\/em><\/p>\n<p>Lubomir Tassev <\/p>\n<p class=\"article__body__author__info__about\">\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/top-ecb-official-ramps-up-anti-crypto-rhetoric-calls-for-global-regulations\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Comparing the rise of crypto assets to the gold rush, a top executive at the European Central Bank has urged governments to take action to prevent \u201ca lawless frenzy of risk-taking.\u201d Speaking in the U.S., the ECB official called for a global regulatory clampdown on cryptocurrencies and stepping up efforts to issue central bank digital [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-3726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3726"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3726\/revisions"}],"predecessor-version":[{"id":3728,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3726\/revisions\/3728"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/3727"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}