September 20, 2020

Head of the ECB: “Stablecoins and crypto assets are not suitable for replacing money”

Head of the ECB: “Stablecoins and crypto assets are not suitable for replacing money”

Chairman of the European Central Bank Mario Draghi believes that stablecoins and crypto assets have not yet become a popular means of payment, as they are not a suitable substitute for money.

In a letter to MEP Eva Kaili,Mario Draghi pointed out that the European system of central banks is closely monitoring the development of the crypto industry. According to him, the ESCB analyzes crypto assets and stablecoins in order to understand their potential impact on monetary policy, market infrastructure and economic sustainability.

Although he is positive about the introduction of newtechnologies, but believes that in general these assets are not of great value and still have not been widely used in the financial sector, since they are not a suitable replacement for money. However, noting that due to the continuous development of the crypto industry in the future, this point of view can be revised.

Mario Draghi also considered launch prospectsdigital analogue of the euro. He said that for this project, the technical part is not a problem, but the usefulness of the asset in terms of cost-benefit ratio for citizens is in question.

According to a study by ING Bank, 32 Europeans are confident that cryptocurrency will become the basis of online payments of the future, and 27% are already ready to constantly pay it.

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