“It’s Not Within Our Powers to Prohibit or Regulate” Bitcoin Says Draghi – Trustnodes

“It’s Not Within Our Powers to Prohibit or Regulate” Bitcoin Says Draghi

6

Mario Draghi, President of the European Central Bank, has stated that it’s not within ECB’s powers to regulate or prohibit digital currencies like bitcoin at the Committee on Economic and Monetary Affairs of the European Parliament.

Asked what are the material risks of bitcoin for the economy, he said there were three considerations, one was the size, two the extent of its use, third being their impact on the economy.

An examination of all three aspects has concluded that it is absolutely premature to consider it as a means of payment in the future, he said. We need to reflect further, it’s size, but we haven’t reached any decisions, he said.

“Certainly it’s not within our powers to prohibit or something similar or to regulate” bitcoin, he said, but we have not discussed any position institutional on the matter, he concluded.

It’s not clear, at this stage, whether that was his full extent of bitcoin comments, but bitcoin’s price jumped $200 around the same time as Draghi’s comments on bitcoin.

Bitcoin’s price jumps after Draghi’s comments.

Draghi made headlines recently for telling Estonia that they could not issue an estcoin token through an Ethereum based ICO, unequivocally stating that the currency of the euro is the euro.

He has not made any further statement on that matter as far as we are aware, with the situation on the proposed ICO somewhat unclear at this stage.

But a Board Member of Germany’s Central bank stated that bitcoin is a “plaything” and central bank issued digital currencies were “unrealistic” at this stage.

Draghi’s comments on bitcoin today were off-script, with his prepared speech not mentioning digital currencies. Focused instead on EU’s general economic outlook and ECB’s approach to monetary policy in the eurozone, arguing that they were currently undertaking a decentralized approach to monetary policy.

 

Comments (6)

  1. Draghi says “were currently undertaking a decentralized approach to monetary policy.”

    Now that’s funny

  2. This just shows you how so early in the game we are guys..just truly an opportunity of a lifetime

  3. > central bank issued digital currencies were “unrealistic” at this stage.

    Lol, what? Central banks are already issuing digital currency: the euro. Money doesn’t get any more virtual or digital than that.

  4. The President of the European Bank has said “It’s Not Within Our Powers to Prohibit or Regulate” Bitcoin

    Did he?

    No, he did not.

    He did not say they cannot do anything about Bitcoin, as the headline suggest . No, what he said is that it is not yet competence of the European Central Bank to do anything about it because it is not considered a mean of payment and in order to be considered as such three criterias are being look at:
    Size, number of users and impact in the economy.

    I find this good enough and I don’t like how distorted this becomes when trying to push Bitcoin (disclosure: I invest in Bitcoin and altcoins).

    My interpretation is that the monetary authority of the biggest market in the world says that Bitcoin, despite it´s hype, is too small to be considered, not used by enough people and not impacting the economy enough to be object of regulation or otherwise.
    I sort of feel he would consider a dual monetary system in the future if Bitcoin was to able to compete with the Euro and that is also good in my opinion.

    1. The Italian translation is wrong. You can hear him in English say “its not within our power” as the interpreter pauses thinking how to translate it. She goes with competence, but what he said in English is “power.”

      1. The word “competenza” in Italian does not mean expertise or proficiency here but the ability to do something, the legitimacy, the attribute to do or not, the authority, etc. the “power” if you will in the English spoken by Draghi, where the unhappy choice of word lays.
        What he meant is the Central Bank does not have the entitlement to do anything YET for the reasons he exposes. That is why he says it is too early, too premature.
        If he was surrendering the Bitcoin he would not say is too early or too premature nor would he mention the three criteria to judge if the Bank should do something about when bitcoin gets big enough, enough people uses it and the impact int eh economy is big enough to grant attention and, eventually, action.

        Still, his tone is moderate enough as this to be good news but it is not a surrender to the might of cryptos nor an admission of lack of “power”, no matter what we can think of it.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Trustnodes