ECB President - "We do not have the ability to ban or regulate bitcoin"

ECB (Central European Bank) President Mario Draghi said that bitcoin does not fall under the authority of the ECB. The statement comes in response to a question from the European Parliament's Committee on Economy and Monetary Activities.

"We do not have the power to ban or regulate bitcoin"

said he.

Bitcoin is outside the jurisdiction of the European Central Bank
Mario Draghi was asked by the Committee whether or not the ECB plans to develop a regulatory apparatus regarding bitcoin, but also what are the risks posed by cryptocurrencies of the European economy.

According to a Google translation of an article on Eunews.IT, Draghi said that after taking into account

"The magnitude, adoption among users and the impact on the real economy (of bitcoin) ... it would be premature to consider it a payment instrument for the future."

The ECB president said that within the institution "they have not had a discussion on this topic yet". He added that, however, they do not have the ability to ban or regulate bitcoin. Draghi also said that the ECB intends to evaluate the cyber risks associated with bitcoin and cryptocurrencies.

Draghi's statements are similar to what everyone else has made about blockchain technology at an event at Trinity University in Dublin.

Bitcoin is outside the ECB's regulatory jurisdiction
During a seminar at Trinity University in Dublin, the ECB president answered the question whether "new technologies, more precisely the blockchain, have a role in future monetary policies"

Draghi replied:

"We have been studying the problem for a long time. One of the conclusions is that, at this moment, the technology is not yet mature enough to be taken into account when we issue new directives. It is not yet mature enough to be considered a payment system. We need to see how this technology will progress in the future. ”

At both events, the ECB president emphasized the ECB's desire to evaluate the cyber risks associated with new technologies. At Trinity University, Draghi said the issue is "dominant in the digital environment." He added that

"Any innovation like blockchain technology will be studied from the point of view of exposure to attacks. How much exposure to cyber attacks will increase if a new technology is adopted. "

The ECB president recently rejected Estonia's plans to launch a state-backed national cryptocurrency. He said that, according to EU law, "no Member State can introduce its own cryptocurrency. The euro area currency is the euro currency ”.

Earlier this week, ECB Vice President Vitor Constancio compared bitcoin to tulip fever that swept the Netherlands in the 17th century. Constancio did not take seriously the idea that bitcoin threatens the European financial sector. He said that bitcoin "is not a currency and we do not see it as a threat to the central bank's policies".