ECB President says that European Banks could hold Bitcoin in future

ECB President says that European Banks could hold Bitcoin in future

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Banks may consider holding positions in the famous Cryptocurrency, in view of recent developments, like the listing of Bitcoin futures in the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).

In brief:

The president of the European Central Bank (ECB), Mario Draghi, has stated that European banks could hold positions in Bitcoin.

Once again, the president of the European Central Bank (ECB), Mario Draghi, has commented about Bitcoin and other cryptocurrencies. On February 5th, confirming the fact that banks are interested in cryptocurrencies, he stated that European banks could hold positions in Bitcoin.

Banks may consider holding positions in the famous Cryptocurrency, in view of recent developments, like the listing of Bitcoin futures in the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).

Speaking at a European Parliament meeting this week, Mario Draghi, the ECB chief, made it clear that as of now the authority hadn’t seen any existing trend of European banks holding cryptocurrencies. Regardless of immense public interest and appetite for cryptocurrencies, the financial institutions in the European Union “are showing a limited appetite for digital currencies like Bitcoin” he said. Although, he holds the view that once cryptocurrencies infuse into the mainstream finance, this trend could change.

“However, recent developments, such as the listing of Bitcoin futures contracts by US exchanges, could lead European banks too to hold positions in Bitcoin, and therefore we will certainly look at that,” avers Draghi.

It is to be noted that Draghi also indicated at an upcoming uniform oversight via a ‘Single Supervisory Mechanism’ to oversee digital assets’ risks toward supervised institutions, or banks.

At the time when Bitcoin and other cryptocurrencies are receiving flak from different corners for being unregulated and very risky assets, this comment from a central banker is remarkable. Moreover, it is noteworthy that despite the disdain of many Wall Street banks, the world’s largest derivatives exchange – the CME Group and CBOE listed bitcoin futures contracts.

Earlier, the EU central banking head said that the ECB does not have the authority to regulate bitcoin. Now, his latest comment implies that EU banks and possibly nations may adopt a more supervisory approach to bitcoin and cryptocurrencies.

Contrary to this, in November, Draghi commented that bitcoin and other cryptocurrencies did not pose any risks for central banks.

If banks begin to hold and invest in cryptocurrencies, the market may experience an influx of money so as bitcoin and other cryptocurrencies could experience substantial price appreciation.

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