Despite their progress in terms of adoption, cryptos still arouse as much skepticism as to their real usefulness. For some reason, some experts still see them as a danger to the financial system.
Cryptos: A Danger Demanding Higher Standards?
European Central Bank (ECB) Executive Board Member Fabio Panetta sees cryptos as a dangerous asset class. Moreover, without benefit to society. Cryptos are more a kind of money game where you can lose big. A reason which justifies that the strictest possible regulations be applied to them.
It is, in essence, there, the opinion of this ECB executive on digital assets. An opinion he shared at the annual conference of the Bank for International Settlements (BIS).
As we can see, Fabio Panetta’s position is clearly hostile to the emergence of the crypto sector. The manager is also fundamentally against the regulatory support he enjoys.
Not only does he believe that the deployment of it is not deserved. But, in addition, he thinks that the regulation of the sector is misguided. Fabio Panetta thinks cryptos should be treated like the gambling they are to him.
For him, applying conciliatory standards to them, as is currently the case, is irrelevant. This is because cryptos have low intrinsic value while no centralized structure controls their issuance.
These “failures” what, in his opinion, would be the basis of the dysfunctions that the market should continually suffer. “Regulators should instead hold cryptos to rigorous regulatory standards, consider their social cost, and treat dubious crypto models for what they really are: a form of gambling” said Panetta.
Despite his obvious hostility, the latter is not against the development of central bank digital currencies (CBDC). According to him, it is rather on them that States must focus their regulatory efforts in order to promote them.
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