The European Central Bank Paying Close Attention to Cryptocurrencies

Bitcoin is going strong in the European market and it has made financial institutions realize its potential, or at least to the technology behind it. The European Central Bank (ECB) had expressed interest previously into adopting the blockchain technology, but the recent events regarding the ban of cryptocurrencies in China, and the SegWit2x hard fork controversy made the institutions spokesmen lay low until recently, when a Bank official called Benoît Cœuré issued a statement saying that the Bank is not ignoring the performance of cryptocurrencies.

The ECB Is Analyzing the Cryptocurrency Market

While the European Central Bank has no power to regulate cryptocurrencies, Benoît Cœuré declared to Le journal Du Dimanche that the institution is watching very closely the performance of cryptocurrencies all over the Union. He also offered stances on the existence of Bitcoin and other digital currencies and their performances against the Euro. The official said that ECB at the moment doesn’t perceive cryptocurrencies as a threat to the European financial market, since the amounts of FIAT money negotiated on digital currency operations are marginal at best.

It’s Not Only ECB, It’s the Whole World

Benoît Cœuré also declared that he believes cryptocurrencies are speculative financial instruments that represent a risk and they may be criminal in nature or origin. He pointed out that almost all Central Banks in the world are coordinating efforts to take action as cryptocurrencies keep spreading in countries that are gradually discarding FIAT money.

Countries inside the Union like Sweden are dealing with cryptocurrencies in unconventional ways by gradually adopting the blockchain technology to handle payment for goods and services. This is reason enough to keep central banks all over Europe on monitor duty around the performance of cryptocurrencies.

Benoît Cœuré is not the only bank official to express concern about cryptocurrency behavior on the UE. Last September ECB’s vice president Vitor Constancio said something along the lines of the ideas expressed by Cœuré by pointing out that digital currencies does not pose a threat to central Bank policies. These statements are rounded up by a comment of the ECB president Mario Draghi who shrugged at the notion that the institution does not have any real power to regulate or prohibit digital currencies.