German Central bank: cryptocurrencies pose no threat to financial stability

11 Jul, 2019
by Richard Allen
German Central bank: cryptocurrencies pose no threat to financial stability

During a talk at the European Parliament, Burkhard Balz, a representative of the Central bank of Germany, has said that cryptocurrencies pose no threat to financial stability, according to a report.

Balz, a Member of the Executive Board of Deutsche Bundesbank. Said, “crypto-tokens currently do not pose a risk to monetary or financial stability.” He noted that “gaps may occur where they fall outside the scope of regulators’ authority or where there is an absence of international standards.”

Balz also warned that increasing popularity of cryptocurrencies will result in increased scrutiny. However, he also stated he has high hopes for the development of digital transformation that may come as a result of artificial intelligence, distributed ledger technology, and cloud 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.”

As Chepicap recently reported, Benoit Coeure suggested that regulators must be ready to act fast in establishing regulations for tech giants entering the financial sector.

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