ECB: cryptocurrencies should be regulated as other assets

Luis De Guindos, Vice-President of the European Central Bank (ECB), said he wanted cryptocurrencies to be subject to the same rules as other assets.

Vice-President of the ECB: cryptocurrencies should follow the same laws as other assets

Luis De Guindos, the current vice president of the ECB, said he thought crypto assets should be regulated like any other assets in the market. De Guindos expressed his views during a series of summer courses sponsored by the European Parliament and the European Union. Specifically, he stated about cryptocurrencies:

“I would not forbid them, but issuers must be required to comply with the same conditions as other financial assets and to avoid anything related to money laundering or terrorist financing.”

For De Guindos, cryptocurrencies can easily be used for illegal purposes due to their pseudonymous features. De Guindos has always been skeptical about cryptocurrencies, which he calls “crypto asstes”, because in his opinion they do not function as currencies. He also said that crypto assets have no impact on the financial stability of the region.

De Guindos also noted that these new instruments have no economic basis compared to other more traditional assets. The value of cryptocurrencies for him comes from scarcity rather than from their relationship to other assets.

The ECB is studying the feasibility of creating a digital euro. This would provide the ECB with a tool to combat the rise of private alternative payment methods, such as cryptocurrencies and methods offered by fintech companies.

The public still expects the ECB to decide soon on the issue of the digital euro. De Guindos believes that such a currency is really needed. He said that the digital euro is:

“Something we have to do. It’s not trivial about the potential consequences for financial stability and monetary policy, so we will have to fine-tune this project to minimize any negative consequences. “

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