Saturday, January 27, 2018

ECB official calls for G20 nations to create a single policy on regulating Bitcoin and other cryptocurrencies

In preparation for an upcoming European Summit, a member of the European Central Bank (ECB) at Davos suggested to G20 members that they look towards the creation of a singular policy across the Eurozone regarding the regulation of Bitcoin and other cryptocurrencies.

Speaking at the World Economic Forum last week, Benoit Coeure intimated that the arrival of digital currencies may be a good thing for getting companies and nations to update their legacy payment systems, but at the same time he warned that problems could occur if individual countries forged their own policies for cryptocurrency regulation outside of a uniform model.

Graphic courtesy of AtozForex
European Central Bank Executive Board member Benoit Coeure urged Group of 20 nations to discuss ways to regulate bitcoin at their upcoming summit, adding that digital currencies could also be a force for good by pushing countries to upgrade their payment systems. 
Digital currencies can buy anything from drugs to cupcakes and are seen as having the potential to reshape the global financial system. 
Couere said the international community needs to find a way to understand and “control these gateways between the shadow currency universe and the regular financial system.”
At the same time he urged central banks not to lose sight of the opportunities created by the rise of cryptocurrencies. 
“We need better cross-border payments also because it’s good for development, it’s good for financial inclusion,” Coeure said. “So bitcoin can help us, it can pay us a service by forcing us to upgrade our systems. That’s a positive lesson.” – South China Morning Post


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