A European Central Bank (ECB) official has made a scathing speech regarding cryptocurrencies, claiming that they are “deleterious” and have no societal benefits.
No Benefits, Only Risks
The official, Beno?t C?ur?, who is a member of the Executive Board of the ECB, made the remarks during a speech at the Economics of Payments IX conference in Basel, Switzerland. C?ur? argued that cryptocurrencies are not a legitimate form of currency and have no societal benefits, stating that they are used mainly for illicit activities such as money laundering, terrorism financing, and tax evasion. He also criticized the energy consumption required for mining cryptocurrencies, stating that it was “unsustainable.”
Lack of Regulation and Oversight
C?ur? also expressed concern about the lack of regulation and oversight in the cryptocurrency market, stating that it was an “unregulated space” that was susceptible to fraud and market manipulation. He argued that this lack of regulation made it difficult for law enforcement agencies to track and prevent illegal activities using cryptocurrencies.
Central Bank Digital Currency
C?ur? went on to discuss the possibility of a central bank digital currency (CBDC), which he argued would have many advantages over cryptocurrencies. He stated that a CBDC would provide consumers with a safe and secure form of digital money that would be backed by a central bank. This would provide consumers with the confidence that their money was safe, and would prevent the risks associated with cryptocurrencies.
In conclusion, Beno?t C?ur?’s scathing speech regarding cryptocurrencies is a reflection of the concerns that many regulators have regarding the cryptocurrency market. While cryptocurrencies have gained popularity in recent years, they remain a highly volatile and risky investment. The lack of regulation and oversight in the market has made it difficult for law enforcement agencies to track and prevent illegal activities using cryptocurrencies. As such, regulators are increasingly looking towards the possibility of a central bank digital currency as a safer and more secure alternative to cryptocurrencies.