Fabio Panetta, a member of the ECB, considers that Bitcoin can cause serious harm to society. Although the ecosystem and the interest in cryptocurrencies are growing, Panetta does not support using them for paying or storing value.
Fabio Panetta recently commented that the creation of reliable money by Satoshi Nakamoto is still a dream. The executive of the European Central Bank (ECB) pronounced those words in a speech at Columbia University, the US.
Panetta has always rejected cryptocurrencies, which was evident in the speech published by the ECB on its official website on April 25th. In the speech For a few cryptos more: the Wild West of crypto finance, he criticized the operation of the Bitcoin ecosystem.
The economist, former director-general of the Central Bank of Italy in 2019, talked about the cryptocurrency sector. He compared the situation with what happened 170 years ago when Americans went to the west of their country for fortune.
According to Panetta, greed and anarchy turned the US into the Wild West, where a few men exploited the dream of many. The executive also pointed out that the same thing is happening with cryptocurrencies.
The manager said that the global financial crisis, the growing distrust in banks, and technological innovation gave rise to a new dream. He referred to the origin of the Bitcoin network as a digital gold rush beyond state control. However, he considers that appearances are deceptive more than a decade after that event.
In the first part of the speech, Panetta questioned the volatility in the price of Bitcoin and its alleged use in illegal activities. He also argued that it contributes to harming the environment and that its decentralization is false. Furthermore, he said that the world financial system faces risks due to that new form of money.
Fabio Panetta Believes that Regulation May Allow Protecting Users
Following the above criticisms, Panetta expressed an imminent need to regulate the cryptocurrency sector. For that reason, he urges the European Parliament to speed up the processes to help investors.
He acknowledged that the ecosystem and the interest in cryptocurrencies from citizens worldwide are growing. However, he did not express his support for them as either a new payment system or a store of value.
The official said globally coordinated regulatory action is necessary to address delicate issues. He mentioned the use of crypto assets in illicit cross-border activities and their environmental footprint.
He highlighted the regulatory work carried on in the eurozone after the debates and votes by the European Parliament. They seek to approve the Markets in Crypto Assets (MiCA) bill. He also considers it is necessary to support the application of higher taxation on the sector.
Finally, Panetta called for the development of a European central bank digital currency, the digital euro, in a shorter timeframe. However, the ECB has kept a public consultation open for citizens to comment on that new currency. According to that survey, most Europeans prefer cash and lean toward ruling out the digital euro as a payment system.
By Alexander Salazar
