A board member of the European Central Bank is pushing crypto regulation to be aligned across the world to mitigate a potentially huge collapse.
- Executive Board Member Fabio Panetta stated that crypto requires a stricter regulatory burden since it is yet to deliver on its promised philosophy of truly decentralized, trustworthy money.
- Panetta further cautioned that crypto-assets are bringing about instability and insecurity, the exact opposed of what they promised, noting “they are creating a new Wild West.”
- The board member called for the unification of standards between cryptocurrency and the traditional finance sector, setting the bar even higher for crypto.
- At $1.3 trillion, the crypto market is bigger than the sub-prime mortgage was during the time of its collapse and they share similar dynamics.
Panetta also cited energy and environmental issues over proof-of-work mining as well as the potential use of crypto as a tax evasion and sanctions evasion tool.
BTCUSD down -0.79%, ETHUSD down -1.39%
Source: European Central Bank
