© Reuters
Investing.com – , & Co are doomed to disappear, according to ECB member Fabio Panetta, who spoke at length on the subject at an event hosted by the Bank for International Settlements on June 23 .
He compared the crypto sector to a rubber balloon and said the following:
“If a balloon is filled with hot air, it may rise for a while, but it will eventually burst.”
From his point of view, cryptocurrencies have already lost a lot of feathers, because since the market crash at the end of 2021 until 2022, people have understood that these assets cannot be used as “reserves” in any way. of stable value”. On the contrary, the high volatility makes it a game of chance at best. Panetta explains as follows:
“Given their limitations, cryptocurrencies have not become an innovative and robust form of finance, but have mutated into a harmful one.
The cryptocurrency ecosystem is characterized by market failures and negative externalities, and there will inevitably be further market disruptions if adequate regulatory safeguards are not put in place.
Policy makers should be wary of supporting a sector that has so far failed to deliver benefits to society and is increasingly seeking to integrate into the mainstream financial system, both to legitimize itself as part of this system and to break away from it”.
The ECB member is thus clearly positioning himself against the crypto sector, which puts him in good company alongside the SEC, the US securities regulator, and the Fed.
In general, central banks want to minimize an alternative financial market over which they have no control. In addition, the whole world is working on the development of digital variants of its own currencies (euro, dollar, etc.).
In the past, Panetta has already spoken out in favor of banning cryptocurrencies under the pretext of having too large an ecological footprint.