Central Banks of Several Countries Discuss the Value and Status of Cryptocurrencies |

In recent days, the cryptocurrency market has gone through one of the most complex moments in recent months, leaving several cryptocurrencies in the red and in this same period, central banks in different parts of the world have started to speaking out on the subject of cryptocurrencies, possible next steps to regulate them, which has made the fear of banning cryptocurrencies greater and it also affects where these assets are at.

Broadly speaking, if we look at the approaches followed by central banks around the world, we find that they fall into two categories. The first is to recognize bitcoin and cryptocurrencies as an asset, but not as legal tender as El Salvador did, nor give them the attributes of a currency in the eyes of the law. This means that cryptocurrencies cannot be used as a means of payment, which would exponentially slow down the progress made by the cryptocurrency market in this area.

The other, more worrying perspective is that regulators fail to recognize the value of bitcoin or any other cryptocurrency. That’s not to say that cryptocurrencies will stay in the regulatory gray zone they already find themselves in, but it will be some kind of ban or restriction that we don’t yet have enough data on. how it will fit in, but that has already started to cause some fear in the market.

Europe and North America review cryptocurrencies

If the subject of crypto-currencies has been one of the most recurrent in the world in recent days, Europe and North America are the ones that have been the most talked about and have the most weight in terms of decisions in the economic field, because these are continents and nations which have made significant economic progress and which are benchmarks in this area.

While some countries have a fairly strong tendency to recognize the properties of cryptocurrencies, increased regulatory scrutiny has also brought the possibility of a ban into the discussion. The Director, Christine Lagarde, of the International Monetary Fund recently warned during a session of the World Economic Forum against confusing cryptocurrencies with currency. According to her, any product that does not benefit from a sovereign guarantee cannot be considered as money or currency.

On the other hand, the President of the European Central Bank also gave her opinion on the matter and commented that cryptocurrencies have no value and they will not support the digital euro project either. She also recalled that in the past she had commented that crypto-assets are highly speculative, very dangerous and, according to her, baseless, as they lack sufficient security standards and therefore need to be regulated as soon as possible. .

In addition to this, the Governor of the Banque de France assured that he has always considered cryptocurrencies as assets and not as currencies. This posits that all currency, in the traditional sense, must be accountable, but cryptocurrencies do not fulfill this characteristic. Also, the money must be reliable and universally accepted, which is not the case with cryptocurrencies, even though they seem to be.

“Cryptocurrencies are a risky asset”.

How central banks and regulators view cryptocurrencies is very important in determining, to some extent, what the next regulatory action will be. In this case, the deputy governor of the Bank of England said that cryptocurrencies are being watched closely and are so far considered a potential risk asset.

While it may sound confusing, what the Deputy Governor is postulating is that they cannot say at this time that cryptocurrencies represent a systematic and general risk, but there have been instances where there are risks of losses. important, as in the most recent crash, or security risks with the scams and illegal activities that have developed in the market.

Added to this is the fact that a large number of investors in the market do not really know about cryptocurrencies. In this case, it is more particularly the retailers who have only recently entered the market in the hope of making big profits. They bet on cryptocurrencies without knowing the investment risks, which makes regulators very vigilant.

At the moment, it seems that the attitude towards cryptocurrencies is not too restrictive, but one can never be sure what position regulators will take. The United States has recently started to take a closer look at cryptocurrencies, the G7 has started talking about cryptocurrencies again, so we could hear about the new regulations any day now.

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