ECB Draghi: The influence of cryptocurrencies is low

The head of the European Central Bank (ECB) believes that cryptocurrencies currently have too little influence to be regulated.

Speaking to the European Parliament on Monday, Mario Draghi said digital currencies are not a threat to the euro and the ECB's control, with little adaptation among the 27 member states. As a result, the impact of cryptocurrencies on the economy would have only a limited impact.

In a statement to legislators, he said:

"We think that the distribution of cryptocurrencies is rather limited. So there is still no risk for central banks. "

No clear answer:

Draghi's comments come just days after a Governing Council member commented on the issue. Central banks are trying to decide whether to regulate digital currencies. Ewald Nowotny, President of the National Bank of Austria, said legislators are wondering if they should participate in the regulation of cryptocurrencies. As an example, he referred to China's recent shutdown of Bitcoin exchanges.

In fact, statements this week are the latest in which Draghi, formerly head of the Italian central bank, commented on cryptocurrency matters. However, he does not give a clear answer to possible regulations. So the question remains whether the institution will ultimately pursue any form of regulation. He pointed out that the population should "appreciate" innovations in the financial sector, including cryptocurrencies. At the same time, however, possible risks must also be considered. Draghi does not believe that the ECB can regulate Bitcoin, as the parliamentary committee for economics and currency explained in September, since the regulation of crypto currencies does not fall within the jurisdiction of the bank.