THE ECB PRESIDENT CALLED CRYPTOCURRENCIES “A DUBIOUS INVESTMENT”

The President of the European Central Bank (ECB), Mario Draghi, during a meeting with the winners of the Euro Generation award, called cryptocurrencies a risky tool for investment.

The Euro Generation award is given for winning the competition for high school students organized by the ECB and the Central banks of the Eurozone.

“Cryptocurrency – bitcoinor anything like that is not a really currency, it’s a risky assets. Euro is Euro. Today, tomorrow, in a month – it’s always the Euro. And the ECB is behind the Euro. Who is behind cryptocurrency?. They are very risky assets,” he answered a question about his attitude towards crypto assets.

The head of the ECB also stressed that cryptocurrencies are not significant enough to affect the economy at the macro level. A similar point of view was previously expressed by his colleague Yves Mersch, saying that the cryptocurrency market is not large enough to threaten financial stability.

Draghi recalled that the regulation of cryptocurrency usage is not within the competence of the ECB. However, the Bank feels responsible for protecting the rights of consumers, who, when acquiring these “questionable assets”, must make sure that they understand their actions and are aware of the risks they are facing.

The cryptocurrency community has criticized Draghi’s position, pointing to inflation of Fiat currencies as proof of the fact that the Euro can also be called a risky asset due to the instability of its price.