European Central Bank (ECB) board member Fabio Panetta published a post on the ECB blog highlighting the need for regulation in the cryptocurrency industry.
“We cannot allow cryptocurrencies to remain unregulated.”
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Panetta described unbacked crypto assets as speculative assets that lack intrinsic value. “They are gambling disguised as investment assets,” Panetta said, because investors buy these assets only to sell them at a higher price.
“Regulators must walk a tightrope. Like Ylysses, they must resist the glamorous cryptocurrency siren so as not to fall prey to heavy industry lobbying.”
Panetta Quote It is the EU regulatory framework for the Marketplace of Crypto-Assets (MiCA), which it claims should be implemented as soon as possible.
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According to Panetta, regulation and taxation are necessary but not sufficient to “fully address the shortcomings of cryptocurrencies.”
“By preserving central bank money’s role as the anchor of the payment system, central banks ultimately protect the trust on which private forms of money depend.”
