Burkhard Balz – a rep from Central Bank of Germany – claimed that the potential harm causing to financial stability, coming from cryptocurrencies, is not that significant. The news was posted via the European Parliament website on July 9th.
“Crypto-tokens currently do not pose a risk to monetary or financial stability. Gaps may occur where they fall outside the scope of regulators’ authority or where there is an absence of international standards.” Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, claimed.
The Spanish law enforcement representatives have also expressed perspectives that are similar to Balz’s, by revealing that Bitcoin ATMs exposed potential flaws in the European Union’s Anti-Money Laundering regulations. Balz also notified that any rise in the popularity of crypto assets will need a thorough examination. However, he also hoped that artificial intelligence, distributed ledger technology, and cloud services can digitally transform financial services.
“We are not talking about “evolution,” about banking adapting to the wants and needs of a digital generation — we are talking about a true “disruption” that may change the financial sector for good.”
Last week, European Central Bank executive board member Benoit Coeure urged financial regulators need to take a proper course of action fast, to be ready for the arrival of Facebook’s Libra stablecoin.