Uncovered cryptos are a gambling agent that lacks inner value - finance
Uncovered cryptos are a gambling agent that lacks inner value - finance
Fabio Panetta, member of the European Central Bank Executive Committee (ECB), is of the opinion that unsecured cryptocurrency systems are vehicles for gambling without internal value that must be regulated. In an opinion contribution, Panetta notes that the regulation of cryptocurrencies is a good answer to the problem, but also has to touch decentralized financial structures.
ECB Executive member Fabio Panetta believes that crypto should be subjected to gambling-like regulation
The topic of cryptocurrency regulation and how it should be used is still an essential topic for all regulatory authorities worldwide. Fabio Panetta, member of the European Central Bank's Executive Committee (ECB), believes that cryptocurrencies that pretend to be fixed assets are more like gaming instruments. As part of an opinion contribution published on January 4th argues that unknown cryptos argues more like Gambling instruments than currencies should be regulated.
About crypto he said:
You are speculative systems. With the only goal, investors buy them at a higher price. In fact, they are a gambling that is disguised as an investment value.
As a gambling elements, these will most likely not stop to exist if they are left alone, explains Panetta, even if they lack the "inner value" and they are rarely used as a means of payment.
Decentralized financial supervision required
The series of negative incidents in 2022, including the downfall of the Terra ecosystem and the bankruptcy of one of the largest crypto exchanges, FTX, is part of what drives Panetta's opinion. For him, the degree of interweaving that cryptos now see with traditional finances makes it impossible to leave crypto unregulated. Panetta explained:
We can't afford to leave cryptos unregulated. We have to build guardrails, close the regulatory gaps and arbitrage and address the considerable social costs of cryptos directly.
According to Panetta, this upcoming wave of regulatory wave must not only consider cryptocurrencies as gambling instruments, but also taxes them according to “the costs” that they impose. Panetta continues to deal with the decentralized financing, notices the need for regulation in this sector and mentions the crypto-assets or non-kept handicrafts. Finally, Panetta supports the creation of digital central bank currencies (CBDCs) to remedy the shortcomings of crypto and to protect the role of central banks.
Europe is currently in the A separate set of sets for To introduce cryptocurrencies called Mica (Markets in Crypto Assets), and is it also Digital version of his Fiat currency, the digital euro.
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