This week Ewald Nowotny, a member of the board of directors of the european central Bank said in an interview that the ECB (European Central Bank) is currently discussing the legal limitations of Bitcoin and other crypto-currencies. In recent years, the european central Bank has said a lot of things. Nowotny indicated that the central bank is currently studying the regulation of digital currencies.
This member of the ECB explained that the Bitcoin is not a currency, since it is very volatile and speculative. He added that this motto is also not subject to regulation.
Stability is an important criterion for the money market
This is not the first time that Nowotny discusses the evolution of Bitcoin. He was also very frank about the digital currency. Nowotny said that the Bitcoin does not have the main characteristic of a real currency, namely stability. The market of crypto-currencies is highly volatile, he added.
Moreover, when he made this statement, Nowotny explains that even if the central Bank does not prohibit Bitcoin, investors should be aware of the risks related to such investment.
Discuss the legal constraints of Bitcoin within the ECB
The president of the ECB, Mario Draghi, stated last month, the committee of the european Parliament that this is not their jurisdiction to prohibit or regulate the Bitcoin. He said that this institution is not able to put in place arrangements to regulate this market.
In addition, the President of the ECB rejected the plan of the Estonian government for the creation of its own crypto-currency. It stated that no EU member has the right to introduce its own currency. For the latter, the currency of the euro zone is the euro. Despite the President’s position, the question of the regulation of Bitcoin is still topical.