Virtual currencies may remain even if the bubble bursts

Virtual currencies may remain even if the bubble bursts

The market bubble for virtual currencies is already deflating, but central banks should still pay attention to them as innovation can remain even if the market's early leaders have disappeared, European Central Bank board member Eaves Moersch said on Thursday.

“Virtual currencies are not money, and they will not become so in the near future,” says Mr. Mersch. “Their market share is still small and their links to the real economy are still limited.”

“But that could change. Therefore, regulators and legislators at all levels must urgently address the issue of mitigating the potential risks that may arise from activities associated with virtual currency.”

Mersch also said that he does not see a compelling motivation for the European Central Bank to issue digital money, an issue currently being explored by some central banks, since such an innovation is not currently necessary and could have a negative impact on the financial system.



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According to https://www.reuters.com

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