ECB calls for crypto regulation, expedited CBDCs deployment News ▸ EU ▸ Regulation
ECB calls for crypto regulation, expedited CBDCs deployment
ECB's Executive Board member Fabio Panetta wrote in the ECB blog emphasizing the need for crypto regulation and CBDCs.
1 min read
Updated: Jan. 5, 2023 at 5:16 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
European Central Bank (ECB) Executive Board member Fabio Panetta published a post in the ECB blog emphasizing the need for regulations in the crypto industry.
“We can’t afford to leave cryptos unregulated.”
Crypto Concerns
Panetta described unbacked crypto assets as speculative assets that lack any intrinsic value. Since investors only buy these assets to sell them at a higher price, Panetta says, “they’re a gamble disguised as an investment asset.”
“Regulators must walk a tightrope. LIke Ylysses, they must resist the beguiling crypto sirens to avoid falling prey to the industry’s intense lobbying.”
Panetta cited the EU’s regulatory framework on Markets in Crypto Assets (MiCA), urging that it needs to be implemented as soon as possible.
Call for CBDCs
Regulation and taxation are necessary but not enough to “sufficiently address the shortcomings of crypto,” according to Panetta.
“By preserving the role of central bank money as the anchor of the payment system, central banks will safeguard the trust on which private forms of money ultimately depend.”
Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
