ECB President Mario Draghi believes that crypto assets have a bright future ahead as being used as a mean of payment as we are about to read more in the coming altcoin news below.
The president of the European Central Bank stated in a letter to the pro-crypto MEP that Facebook’s efforts with Libra could see enough adoption to make them a challenge to the euro or the dollar. Draghi also acknowledged the potential of the public-facing ‘’crypto-euro.’’ In the letter which was posted on Twitter by the member of the European Parliament Eva Kaili, the ECB President stated that he does not see any current crypto assets that could have real implication for the entire European financial system.
After explaining that the European System of Central Banks is closely watching the developments in the crypto-asset industry and how they can impact the monetary policy, Draghi stated:
“Thus far, stablecoins and crypto-assets have had limited implications in these areas and are not designed in ways that make them suitable substitutes for money.”
However, the current ECB president did not say that this could change. He explained that Facebook’s Libra is one of the many stablecoins that is backed by large technology companies that could have serious implications for the financial status quo of Europe. Draghi wrote that such stablecoins outline just how antiquated the current systems are. The cross-border payments, for example, are one of the areas that have many shortcomings and he also wrote that the currently explored use of the digital euro can improve these overhauling systems:
“… efforts are underway to upgrade existing payment systems and settlement services to ensure that they continue to match the needs of the markets they serve and support economic activity.”
Draghi doesn’t have much time in his position as ECB President and he will soon be replaced by the former managing director at IMF Christine Lagarde as we found out in the crypto news before. She is very receptive of the concept of digital assets but she did state that:
“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto assets/currency, or whatever, and it’s far from the Bitcoins that we used to talk about a year ago, that is clearly shaking the system.”
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