In the interests of customers and Bitcoin, the ECB official is promoting CBDC development
#interests #customers #Bitcoin #ECB #official #promoting #CBDC #development Welcome to Alaska Green Light Blog, here is the new story we have for you today:
Fabio Panetta, a vocal supporter of the central bank digital currency (CBDC) and cryptocurrency skeptic, is a member of the Executive Board of the European Central Bank (ECB). On January 5, he made his most recent case in favor of the former. By creating CBDCs, central banks will “maintain the trust on which private forms of money ultimately depend,” he said on the official ECB blog.
In light of this discovery, the argument that cryptocurrencies should be allowed to “burn at the risk of legitimizing cryptos rather than regulate them” was explored. But this is a straw man who is immediately refuted:
In his opening remarks, Panetta gave a bearish view of cryptocurrencies in 2022. The cryptocurrency market “collapsed last year as investors went from fear of missing out to worry of not getting out,” the author claimed.
“First, it is not a given that crypto assets, despite their fundamental flaws, would eventually self-ignite.”
Second, Panetta argued that for “uninformed investors” in particular, “the costs to society of an unregulated crypto sector are too great to overlook.” He went on to mention money laundering and environmental damage before joking in the tone of the blog post:
Panetta said that after identifying the need for regulation, the European Union’s Markets in Crypto Assets Act (MiCA) was a crucial first step, but fell short when it came to funding crypto assets or non-custodial wallet services. Additionally, according to Panetta, “unsecured cryptos […] should be taxed according to the expenses they inflict on society.” His reply:
“It’s not just cryptocurrencies that are being burned.”
“Regulators should view trading in unsecured digital assets as gambling.”
Taxation and measures to protect “vulnerable consumers” would also be part of this treatment.
According to Panetta, cryptocurrency will also face disadvantages when it comes to taxation and regulation. Confidence in cryptocurrencies will be maintained by only using CBDC as a “risk-free and reliable digital settlement asset” and maintaining the central bank function, he added.
On November 30th, a post on the ECB blog titled “Bitcoin’s Last Stand” caught the attention of the cryptocurrency world. Panetta has previously proposed banning cryptocurrency assets with serious negative impacts on the environment.
Summary of the news:
In the interests of customers and bitcoin, the ECB official is promoting CBDC development. Check all the news and articles from the latest business news updates.