Cryptocurrencies have a powerful ally: German Central Bank
Representative of the German Central Bank in the European Parliament established its position with respect to cryptocurrencies, belying the idea that you could destabilize the traditional financial system.
Establishing a context, it must be explained that elections recently took place with respect to the organizations that organize the famous European Union, such as the European Parliament, in which they discuss the laws and rules that the members of the organization should comply with. In this institution representatives of the different powers of each country participate, such as the Central Banks or representatives of the executive power.
In its last discussion the issue of cryptocurrencies was discussed, in which the positions of each representative were exposed in this regard. As expected, there were three groups of comments: those who defend them, attack them and remain neutral. On this occasion we will present a powerful defender within the institution, being the representative of the Central Bank of Germany.
It is said to be a powerful ally in considering that Germany is the main shareholder, in terms of granting goods, income and loans of all members.
Is Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, who stated that "cryptocurrencies do not currently pose a risk to monetary or financial stability". In addition, he also noted that "gaps can occur when they are beyond the reach of regulators, authorities 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).
Balz also warned in his speech that any increase in the popularity of cryptographic assets warrants detailed examination. Still, he also expressed great hopes in the digital transformation brought about by artificial intelligence, distributed ledger technology and cloud services, saying:
"We are not talking about evolution, about how banking adapts to the wishes and needs of a digital generation, we are talking about a real" interruption "that can change the financial sector forever."
This argumentative line is similar to an article that we exposed at the end of last year, being "The European Union does not consider that cryptocurrencies represent a threat to the Central Banks".
I am an economics student, interested in innovation and technological development, always faithful that tomorrow will be a better day.
. (tagsToTranslate) Germany (t) Cryptocurrencies (t) Europe (t) Regulators (t) European Union
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