December 2, 2023

The ECB is studying the impact of cryptocurrencies on the financial system

The ECB is studying the impact of cryptocurrencies on the financial system

Member of the Executive Committee of the European Central Bank (ECB), Benoit Cure, said that the agencystudies the impact of cryptocurrencies on the existing financial system.

While speaking at the conference,organized by the ECB and the Belgian National Bank, Cure said: “The ECB and other central banks are exploring the potential advantages and disadvantages of using digital assets, taking into account the implications for the economy. However, the initiatives of Central Banks should not prevent private institutions from developing effective payment applications in the European Union.

January 1, 2020 Benoit will head the Department ofinnovations of the Bank for International Settlements, which will be engaged in testing modern financial technologies. Officials are interested not only in virtual currencies, but also in blockchain. Last week, Denis Bowe, deputy manager of the French Central Bank, said that EU authorities are going to study the possibility of creating a system of settlements in euros and digital assets based on distributed database technology. In his opinion, blockchain can help solve problems arising from the transfer of funds between different institutions.

In 2017, the ECB experts published the resultscryptocurrency research, which proved that digital assets do not threaten EU financial stability. Nevertheless, the Central Bank criticized Estonia’s offer to issue a state virtual currency, saying that the euro is the only legitimate means of payment in the EU. Cur noted that the position of the bank's management has not changed in two years. The organization monitors the development of the crypto industry and believes that the use of digital assets does not carry increased risks for fiat currency.