European Central Bank President: We Can Create a Bitcoin Reserve

The head of the European Central Bank stated that European Banks can host post-Bitcoin developments such as Bitcoin futures contracts.

At this week’s European Parliament meeting, European Central Bank (ECB) President Mario Draghi, in both his opening and closing speech, and other speakers He focused on the issue of cryptocurrencies, also referring to the discussions that developed during the meeting between. ECB chief clarified that there is currently no trend to create cryptocurrency reserves in European Banks. To be clear, Draghi said that the desire of financial institutions in the European Union towards cryptocurrencies such as Bitcoin is not very remarkable, but I should add that unlike financial institutions, the interest and desire of the public towards cryptocurrencies is increasing enthusiastically.

The central bank governor acknowledged that this trend of banks could change as the infiltration of cryptocurrencies into the mainstream of finance progresses.

Draghi stated:

“Like Bitcoin futures contracts, recently New innovations that could cause European banks to hold Bitcoin reserves. So we will definitely take this into account.” Banks should take heed of the risks that may arise if they decide to add cryptocurrencies to their reserves.. CME Group listed Bitcoin Futures contracts in mid-December, a situation that many exchange centers did not take into account, and a week ago, the CBOE paved the way by creating its own ranking. He implied that a standard oversight called the ‘Single Oversight Mechanism’ might come to oversee their risk to banks or banks.

Draghi previously said that the ECB currently has no regulatory authority over Bitcoin.. But in his comments this week, he suggested taking a supervisory rather than a regulatory approach to cryptocurrencies and Bitcoin that are allowed or adopted by some nations and banks.. Again in October 2016, Draghi somehow contradicted what he said and said that he thought cryptocurrencies were not mature enough for the ECB to consider regulations.

According to what Draghi said in November; The effects of Bitcoin and the entire cryptocurrency industry are “very limited,” and decentralized cryptocurrencies pose no risk to central banks, essentially denying control of the money supply by a few institutions.

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