European Central Bank is considering legal restrictions on cryptocurrencies

Ewald Nowotny, a member of the Governing Council of the European Central Bank (ECB), has stated that the institution is in discussions to structure a legal project around Bitcoin and the rest of the cryptocurrencies.

The Central Bank is known for its numerous statements on Bitcoin in recent years, and this time it was the Austrian economist Ewald Nowotny who again explained his position: Bitcoin is too volatile and lacks the necessary supervision, although from the ECB are already analyzing different legal restrictions. However, they do not yet reveal specific details on the measures

In particular, the financial expert pronounced the following words:

Bitcoin is not a currency, it is too speculative, volatile and it is not subject to any supervision … The recent movements of the stock market so reflect it.

This is not the first time that Nowotny gives his opinion on Bitcoin. And is that, in July of last year, the economist stated:

Bitcoin does not have stability, therefore it can not be considered a good asset … Cryptocurrencies are subject to speculation and retail investors must be aware of the risks.

In addition, ECB President Mario Draghi told a European Parliament committee last month that “it is not within his power to ban or regulate Bitcoin.” Draghi explained to the committee members that the Central Bank had not yet discussed the possibilities of implementing a regulation, although that does not mean that the top executive is a big supporter of the digital currencies, because he was in complete disagreement with the plans of the Estonian government, since in this country they plan to create their own crypto … The CEO expressed that “no member state of the European Union can create its own currency, given that the euro is the only means of payment that must be used by the countries that are part of the treaty “. Notably, Draghi recently sent a letter to Parliament explaining that there is no evidence that crypto-currency finances are affecting the “real economy” in any positive way.

In his letter, the President of the ECB explains:

Although the market capitalization of digital currencies has increased massively, there is no evidence that this has contributed to the strengthening of the real economy.

After exposing Draghi’s arguments, Nowotny commented in his interview that the Central Bank is definitely considering building a regulatory scheme around Bitcoin … Ewald also noted what is happening in China:

There is a very particular problem in China since Bitcoin is used as a means to circumvent the legal regulations.

Nowotny’s statements indicate that the ECB is investigating what restrictions it must submit to the European Parliament with a view to their implementation this year. There is a rumor that the legal project would come into effect by the end of 2017.