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.”
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.”