November 29, 2023

The head of the European Central Bank spoke positively about cryptocurrencies

The head of the European Central Bank spoke positively about cryptocurrencies

It seems that the traditional financial system is moving to the final stage of understanding the new realities of digitalcurrencies to the adoption stage.

Head of the European Central Bank (ECB)Christina Lagarde, who recently took office, said that financial institutions must anticipate the development of stable digital coins and be one step ahead in the context of the growing popularity of stablecoins.

The transformation of the views of the ECB

Tough criticism and denial of the positiveThe impact of the digital financial system on global finance is a thing of the past. Yesterday, Lagarde once again spoke positively about cryptocurrencies and noted the need for the ECB to participate in the formation of the digital stablecoin market:

“My personal belief in the issue of stable coins is that we better be ahead. There are new requirements that we must answer. ”

Earlier, until September 2019, Lagarde heldthe position of head of the International Monetary Fund (IMF) and was also one of the few leaders in traditional finance, who realized the need to adapt to the new realities of financial technology.

“Introduction of new digital financial technologiesobliges us to be prepared for risks that affect the stability of the financial system. Proper regulation needs to be developed so that the new system works for the public good, as well as recognizing the broad social benefits of innovation. ”- noted Lagarde in September.

It should be noted that the previous ECB chapters wereclear opponents of cryptocurrencies and stablecoins. Jean-Claude Trichet (head of the ECB from 2003 to 2011) recently expressed doubt that cryptocurrencies could someday become the future of money and are “harmful speculative assets”. Mario Draghi, who led the ECB from 2011 to 2019, did not recognize the importance and value of stablecoins and cryptocurrencies.

Recall that this week the US SEC chairman told the Senate about the positive achievements in the cryptocurrency regulation policy and noted the danger of introducing global stablecoins.