The European Central Bank or ECB, has been going over the possibility of whether or not implementing restrictions on cryptocurrencies would be a good idea.
According to a member of the ECB’s governing council, Ewald Nowotny, bitcoin and the likes are “not a currency.” Nowotny also stated that their extreme volatility and the lack of oversight they currently have, leads the valuation of each cryptocurrency totally at the helm of speculation.
Within the country of China, virtual currency has been used recently to ascertain capital without having to follow any legal restrictions. This has been a cause of concern for many bodies of government, and has caused legislation to quickly be put in place for the use of cryptocurrencies.
Nowotny’s statement comes only a week after the President of the ECB, Mario Draghi stated that the European Parliament does not have the proper authority within itself to prohibit the use of bitcoin and other cryptocurrencies.
The ECB also released a report around the idea that distributed ledger technology or DLT, should not commingle with non-DLT systems. This means that real-world use cases would not be interfered with. This decision shows that they are somewhat embracing the technology, but not to the full extent that it should be embraced.
Vice President of the ECB, Vitor Constancio stated on September 22nd, that the volatility of Bitcoin means that it cannot become a full currency. It has currently not shown any “threat to central banking or monetary policy.” They also agreed that blockchain technology is not likely to gain a “widespread use in the field of individual and retail payments.”
Hopefully some sort of agreement can be made between those who want to legislate bitcoin, and those who wish to use it without fear of centralization.